Foxconn agrees to acquire a 50% stake in Mitsubishi's automotive components unit for ~$727M; Mitsubishi will provide autonomous tech for Foxconn's EV platforms

If you design EV platforms, you can now source integrated powertrain and autonomous systems from a single joint venture.

Foxconn has agreed to acquire a 50% stake in Mitsubishi Electric's automotive components unit for JP¥115 billion (approximately US$727 million). The newly formed 50-50 joint venture will focus on supplying electric vehicle (EV) platforms, power electronics, and autonomous driving systems globally. This deal provides Foxconn with crucial powertrain electronics, a capability previously missing from its contract manufacturing model. Mitsubishi Electric gains a partner for its automotive components business, which it has determined cannot achieve significant growth independently. The transaction values Mitsubishi Electric Mobility (MEM) at JP¥320 billion on an enterprise value basis and is anticipated to finalize by October 2027, pending regulatory approval. Following the completion, MEM will no longer be consolidated by Mitsubishi Electric, which expects to record an impairment charge of around JP¥100 billion in the current fiscal year. This collaboration builds upon a data center partnership established between the two companies in November 2025.

This strategic move signals Foxconn's aggressive expansion into the automotive supply chain, leveraging Mitsubishi Electric's expertise in power electronics and autonomous technology to bolster its EV platform offerings. The partnership aims to achieve aggressive revenue targets, projecting ¥1 trillion by fiscal 2030, necessitating significant growth from a current base including internal combustion engine components. This ambition highlights a strategic hedge against the inevitable shift towards EVs, underscoring the critical role of software and advanced electronics in future vehicle architectures.

The joint venture’s success hinges on Japanese automakers’ willingness to outsource EV platform development to a foreign-influenced supplier, a decision complicated by Foxconn’s significant global presence. While Mitsubishi Electric will retain day-to-day management to ease concerns, the ultimate test will be whether this collaborative model can persuade other Japanese manufacturers to adopt a similar approach to platform outsourcing, mirroring trends seen in software development partnerships.