Hon Hai spent 23.5 billion yuan to buy equity and signed a strategic alliance with Mitsubishi Electric

Hon Hai Chairman Liu Yangwei (right in the picture) signed a cooperation agreement with Mitsubishi Electric today.

Hon Hai (2317) pointed out today that the group has signed a strategic alliance with Japan's Mitsubishi Electric. The two parties will jointly operate the automotive equipment business and combine Mitsubishi Electric's technical advantages in the fields of electronic power systems, software and vehicle control with Hon Hai's capabilities in speed, scale and market implementation to jointly create a high-quality electric vehicle platform originating from Japan and promote the development of next-generation mobile solutions.

According to the cooperation agreement, Hon Hai will acquire a 50% stake in Mitsubishi Electric Mobility, a subsidiary of Mitsubishi Electric that is responsible for the automotive equipment business, for 115 billion yen (approximately NT$23.57 billion) through its investment management subsidiary Lin Yin International Investment. In the future, both parties will jointly operate Mitsubishi Electric Mobility and deepen cooperation in the automotive industry.

Hon Hai pointed out that the enterprise value of the subject matter of this transaction is 320 billion yen (approximately NT$65.6 billion), and the equity value is 230 billion yen (approximately NT$47.15 billion). The transaction price is calculated based on the equity value, corresponding to the 50% equity transferred. The equity transfer must still comply with relevant contractual conditions, including obtaining approval and permission from the competent authorities required by the Competition Law and other applicable laws. The transaction is expected to be completed on October 1, 2027.

In terms of technical cooperation, Mitsubishi Electric Mobility has technology and R&D capabilities in the fields of electronic powertrain, software and vehicle control, while Hon Hai has advantages in speed, scale and market implementation. Through joint operations, the two parties will integrate their respective resources and capabilities, jointly develop high-quality electric vehicle platforms, and promote the popularization and development of new generation mobility solutions.

Hon Hai said that this strategic alliance will be based on the concept of "Made in/by Japan" and combine the advanced technology and quality accumulated by Japanese manufacturing to further strengthen Japan's domestic industrial foundation and support the development of the automotive industry. Looking forward to the mid-to-long term, both parties will work hard to promote Japanese technology and quality to the global market and enhance the value of Japanese manufacturing in the next-generation mobile field.