Will leverage “Made in/by Japan” brand to support sustainable growth of Japanese automotive industry

16 October 2026, Taipei, Taiwan, Tokyo Japan – Lin Yin International Investment Co., Ltd. (Lin Yin), an investment management subsidiary of Hon Hai Precision Industry Co., Ltd. (Hon Hai Precision Industry) (Foxconn), and Mitsubishi Electric Corporation (Mitsubishi Electric) announced today that they have formalized a strategic alliance for the joint operation of an automotive equipment business. Through the alliance, the companies aim to develop next-generation mobility and thereby strengthen the sustainable growth of the Japanese automotive industry.

Under the agreement, Mitsubishi Electric will transfer to Lin Yin 50% of its stake in Mitsubishi Electric Mobility Co., Ltd., which handles Mitsubishi Electric’s automotive equipment business, after which the two co-owners will jointly operate Mitsubishi Electric Mobility. The share transfer price is expected to be JPY 115.0 billion. The share transfer agreement establishes an enterprise value of JPY 320.0 billion and an equity value of 230.0 billion for the target business. The transfer price corresponds to a 50% stake to be transferred based on the equity value. Subject to the satisfaction of contractual conditions, including obtaining required approvals and clearances from relevant authorities under competition laws and other applicable laws and regulations, the share transfer is expected to be completed on October 1, 2027.

The joint-operating arrangement will combine Mitsubishi Electric Mobility’s technological and developmental capabilities, particularly in electric powertrains, software and vehicle control, with Hon Hai Precision Industry’s speed, scale and other strengths in market deployment.

By providing high-quality electric-vehicle platforms (basic structures) developed in Japan, the companies expect to contribute to the widespread adoption and advancement of next-generation mobility. The alliance will translate advanced technologies and quality achieved through high-level Japanese manufacturing into new value for mobility. In turn, this is expected to strengthen Japan’s industrial base and support the sustainable growth of the domestic automotive industry. In addition, over the medium to long term, the companies aim to expand Japanese technology and quality to global markets as well as further enhance the value of “Made in/by Japan” and demonstrate new possibilities for Japanese manufacturing to the world.

About Hon Hai

Hon Hai Technology Group (Foxconn) (TWSE:2317) is the world’s largest electronics manufacturer and leading technology solutions provider, ranking 23rd in Fortune Global 500. In 2025, revenue totaled TWD8.1 trillion (approx. USD260 billion). The Group’s market share in electronics manufacturing services (EMS) exceeds 40% and covers four major product segments: smart consumer electronics; cloud and networking; computing; and components and other. Operating over 240 campuses across 24 countries, Foxconn is one of the world’s largest employers with approx. 1 million employees during peak manufacturing season. We are committed to sustainability in the manufacturing process and serving as a best-practice model for global enterprises. The Group is guided by its 3+3+3 strategy, actively investing in industries of electric vehicles, digital health, and robotics; in technologies of artificial intelligence, semiconductors and next-generation communications; in intelligent platforms of Smart Manufacturing, Smart EV and Smart City. Foxconn is dedicated to becoming a comprehensive, world-class enterprise, with AI as its core driving force. Learn more at www.foxconn.com/en-us

About the Mitsubishi Electric Group

Guided by its corporate philosophy, Mitsubishi Electric Corporation (TOKYO: 6503) places sustainability at the core of its operations and values stakeholder trust—encompassing society, customers, shareholders and employees. In pursuing profitability, capital efficiency and growth, Mitsubishi Electric works closely alongside customers to develop value-added solutions that address today’s complex challenges while enhancing the company’s sustainable corporate value.

Founded in 1921, Mitsubishi Electric has over a century of experience in delivering reliable, high-quality products and solutions. With over 200 group companies and approximately 150,000 employees worldwide, the company is a recognized global leader in manufacturing, marketing and selling electrical and electronic equipment and systems across a broad range of sectors, including 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 & devices.

Mitsubishi Electric recorded consolidated revenue of 5,894.7 billion yen (U.S.$ 36.8 billion*) in the fiscal year that ended on March 31, 2026. For more information, please visit www.MitsubishiElectric.com

*JPY 160=USD 1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2026