Foxconn's latest EV push is a $727 million bet for half of Mitsubishi Electric's car parts business

Foxconn has secured a $727 million investment in half of Mitsubishi Electric's automotive equipment business, enhancing its capabilities for developing electric vehicles. The deal grants Foxconn access to vehicle-control technology and software expertise, bolstering its engineering resources. However, much of the acquired business caters to conventional vehicles, and the success of this venture hinges on turning this expertise into marketable products.

The companies aim to merge Mitsubishi Electric's powertrain, autonomous-driving, and in-car computing technologies with Foxconn's manufacturing operations, intending to construct EV platforms in Japan and sell them to Japanese automakers before targeting international markets. Jun Seki, Foxconn's chief strategy officer for EVs, emphasized the significance of electronic-control technology and the extensive software resources behind it.

Mitsubishi Electric Mobility's offerings include alternators, starters, ignition coils, radar sensors, and electric powertrain equipment. The deal excludes Mitsubishi Electric's power-semiconductor business, which involves silicon-carbide and insulated-gate bipolar transistor power modules utilized in EV inverters. Following the acquisition, Mitsubishi Electric will transfer its remaining automotive operations to Mitsubishi Electric Mobility.

Foxconn's investment arm, Lin Yin International Investment, will acquire half of the combined business. The partnership anticipates completing the deal in October 2027, pending antitrust reviews and other necessary approvals. Mitsubishi Electric has been restructuring its portfolio, divesting car multimedia, fuel injectors, and transferring its lighting business to Stanley Electric.

Earlier, Mitsubishi Electric Mobility and Aisin planned a joint venture for traction motors, inverters, and control software but abandoned the joint venture, opting for a business alliance instead. This acquisition provides Foxconn with an additional pathway into the automotive industry, following several years of prototypes, partnerships, and setbacks.

Although Foxconn initially aimed to manufacture Fisker's Pear EV at its Ohio factory, the project never materialized. The company has since progressed in other ventures, including Foxtron's ASX VR-e for Australia and New Zealand, a bus joint venture with Mitsubishi Fuso, and a partnership with Saudi Arabia's Ceer EV brand. The Mitsubishi Electric agreement adds an established automotive supplier to Foxconn's network, complementing its existing vehicle-development and manufacturing partnerships.