-- Hon Hai Precision Industry (TPE:2317) and Mitsubishi Electric (TYO:6503) signed a memorandum of understanding to explore a strategic partnership in the automotive equipment business, according to a Friday Taiwan Exchange filing.
Shares of Hon Hai rose about 3% in Monday's midday trade in Taiwan, while those of Mitsubishi Electric gained marginally in Tokyo.
Under the deal, both sides will discuss the possibility of jointly operating the business, including Foxconn potentially acquiring a 50% stake in Mitsubishi Electric Mobility.
The plan remains subject to mutual agreement on commercial terms and regulatory approvals before any final deal is reached.
Discussions are still in the exploratory stage, and no binding transaction has been completed, the companies said.
The move is part of its broader push into the automotive and mobility sector, the filing said.