Foxconn buys half of Mitsubishi Electric auto unit for $727M — SkimNews
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- Foxconn agreed to buy 50% of Mitsubishi Electric's auto parts unit (Mitsubishi Electric Mobility) for ¥115 billion ($727 million) via its investment arm Lin Yin International Investment, with closing expected October 1, 2027 after antitrust reviews.
- The deal values the business at ¥320 billion in enterprise value and ¥230 billion in equity — well below the roughly ¥352 billion in net assets on its books, which is why Mitsubishi Electric expects to book a ¥100 billion impairment this fiscal year.
- Mitsubishi Electric Mobility is primarily a traditional Tier 1 supplier making alternators, ignition coils, fuel pump modules, millimeter-wave radar and airbag control units; only a smaller electrification portfolio (traction motors, inverters, battery management units, on-board chargers) is attached.
- Foxconn is not getting Mitsubishi Electric's SiC and IGBT power semiconductors that go inside EV inverters — those sit in a separate power device business now in merger talks with Rohm and Toshiba since March.
- Mitsubishi Electric Mobility scrapped a planned EV components joint venture with Aisin in October 2024, downgrading it to a business alliance five months after first announcing it.
- Foxconn's EV track record includes the Lordstown, Ohio factory it sold last year for $375 million, the Fisker Pear that never reached production after Fisker's 2024 bankruptcy, and a Nissan stake approach in early 2025 that went nowhere.
Why it matters: Mitsubishi Electric is shedding a mature, shrinking division at a discount — ¥230 billion equity value against ¥352 billion net assets, triggering a ¥100 billion impairment. The target's revenue dropped ¥43.5 billion last fiscal year on weaker Japanese automaker sales in China, and Foxconn's promised ¥1 trillion revenue by fiscal 2030 implies just ~5% annual growth — modest for a deal pitched as its biggest EV bet yet.
Ask SkimNews
