TOKYO — Japan's Mitsubishi Electric will transfer 50% of its automotive equipment business unit to Hon Hai Precision Industry, also known as Foxconn, according to sources announced on October 9.
The deal marks a new step in Mitsubishi Electric's restructuring strategy for its automotive equipment operations, as the company seeks to share resources and expand cooperation with the Taiwanese partner in the field of electronics and automotive components.
Hon Hai, the world's largest contract manufacturer, is stepping up its presence in the electric vehicle supply chain and smart mobility solutions. Holding a stake in Mitsubishi Electric's automotive equipment unit could help the company expand its production capacity and gain access to Japanese technology.
The news comes as the global automotive industry witnesses a wave of partnerships and joint ventures aimed at adapting to the transition toward electric vehicles and software-defined vehicles.
Details on the deal's value and implementation timeline have not been fully disclosed.
