Hon Hai has agreed to acquire a 50 percent stake in Mitsubishi Electric
Mobility Co. to establish a partnership to jointly operate an automotive
equipment business.

Hon Hai, which is also known as Foxconn, said it has signed an agreement with
Mitsubishi Electric Corp. under which it will spend US$728 million to acquire
the stake.

The deal is conditional on obtaining necessary approvals and clearances,
including antitrust approvals.

Hon Hai expects the transaction to be completed by Oct. 1 next year.

In recent years, Hon Hai has aggressively diversified its business under its
"3 plus 3" strategy, expanding into integrated hardware and software
solutions.

The strategy focuses on three emerging industries -- electric vehicles,
robotics and digital health care -- supported by three core technologies: AI,
semiconductors and communications.

Electric vehicles remain a key focus of the company's business development.

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