Hon Hai, Mitsubishi Electric sign MOU on potential joint automotive business

Taipei, April 25 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. announced on Friday that it has signed a memorandum of understanding (MOU) with Japan's Mitsubishi Electric Corp. to explore possible joint operations in the automotive equipment business.

The agreement came as Hon Hai, also known as Foxconn globally, has intensified its efforts to take a larger share of the global EV market.

The pact was signed by Jun Seki, Hon Hai's chief strategy officer for electric vehicle development, and Kazunori Tanaka, Mitsubishi Electric's executive officer for automotive equipment.

Under the MOU, both sides will discuss joint business operations, including a transfer of a 50 percent stake of Mitsubishi Electric's subsidiary Mitsubishi Electric Mobility Corp. to the Taiwanese company.

Hon Hai said whether the stake transfer will be formally concluded is subject to the two parties' ability to come to a mutual agreement on commercial terms.

"Discussions between the parties are planned to proceed promptly, and final agreement will be based on the results of negotiations and contract signing between both parties, subject to relevant regulatory requirements," Hon Hai said.

According to Hon Hai, Mitsubishi Electric, established in 1921, owns more than 200 affiliate companies around the world with a workforce of about 150,000 worldwide working in a wide range of industries such as public utility systems, energy systems, defense and space systems, factory automation systems, automotive equipment, building systems, air conditioning systems/home products, digital innovations, and semiconductor, and devices.

Before the MOU was announced on Friday, Hon Hai and Mitsubishi Electric had inked another MOU in early November 2025, for the development of artificial intelligence data center solutions, with market analysts saying the Taiwanese firm aimed to take advantage of the Japanese partner's strength in power module supply.

AI is another core business of Hon Hai, which has about 40 percent share in the world's AI server market. It is hoping to tap the current global AI boom.

In recent years, Hon Hai has aggressively diversified its business under its "3 plus 3" strategy to expand into integrated hardware and software.

The initiative covers three emerging industries -- EVs, robots, and digital health care -- which the company said it is developing via AI, semiconductor and communications technologies.