Taipei: Taiwan-based manufacturing giant Hon Hai Precision Industry Co., known globally as Foxconn, announced on Friday the signing of a memorandum of understanding (MOU) with Japan's Mitsubishi Electric Corp. to explore potential joint operations in the automotive equipment business. The agreement represents a strategic move by Hon Hai to enhance its presence in the global electric vehicle (EV) market. According to Focus Taiwan, the MOU was formalized by Jun Seki, Hon Hai's chief strategy officer for electric vehicle development, and Kazunori Tanaka, Mitsubishi Electric's executive officer for automotive equipment. The agreement outlines discussions on joint business operations, including the potential transfer of a 50 percent stake in Mitsubishi Electric's subsidiary, Mitsubishi Electric Mobility Corp., to Hon Hai. However, the completion of this stake transfer will depend on both parties reaching a mutual agreement on commercial terms. Hon Hai emphasized that discussions are expected to proceed swiftly, with the final agreement contingent on successful negotiations and contract signing, in compliance with relevant regulatory requirements. The Taiwanese company is strategically positioning itself to capture a larger share of the burgeoning EV market through this collaboration. Mitsubishi Electric, founded in 1921, operates more than 200 affiliate companies worldwide with a workforce of about 150,000. The company is involved in various industries, including public utility systems, energy systems, defense and space systems, factory automation systems, automotive equipment, and more. Before this recent MOU, Hon Hai and Mitsubishi Electric had previously signed another MOU in November 2025, aimed at developing artificial intelligence data center solutions. Market analysts suggest that Hon Hai is leveraging Mitsubishi Electric's expertise in power module supply as part of this collaboration. In recent years, Hon Hai has diversified its business under its "3 plus 3" strategy, focusing on integrated hardware and software development in emerging industries such as EVs, robotics, and digital healthcare. This initiative is being driven by advancements in AI, semiconductor, and communication technologies, reflecting Hon Hai's ambition to capitalize on the current global AI boom.
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