Foxconn signs major contract with Mitsubishi for electric cars, benefiting Yageo and Fuding Technology: Taiwanese companies are expanding into the European and American markets.

On May 7, 2024, Foxconn Group and Japan's Mitsubishi Motors signed a memorandum of understanding, with Foxtron, a subsidiary of Foxconn, developing electric vehicles and Yulon Motor will manufacture them in Taiwan. This is expected to see the vehicles launched in Australia and New Zealand in the second half of 2026. This collaboration marks Foxconn's first time securing an electric vehicle order from an overseas car manufacturer and advances the internationalization of Taiwan's automotive industry. Yageo and Fuding Technology are benefiting from the increasing demand for electric vehicle components, with Yageo's global presence supporting Fuding Technology's expansion into the European and American markets, thereby strengthening Taiwan's role in the global electric vehicle supply chain.

Hon Hai and Mitsubishi Join Forces, Taiwan's Electric Vehicle Industry Goes International

On May 7, 2024, Hon Hai Group and Mitsubishi Motors officially signed a Memorandum of Understanding (MOU). Hon Hai's subsidiary, Foxtron Advanced, responsible for electric vehicle development, will handle the design and development, while Yulon Motor will conduct production in Taiwan. The vehicle model is expected to be launched in the Australian and New Zealand markets in the second half of 2026 and will be included in Mitsubishi Australia's 2030 product plan. This is Hon Hai's first overseas electric vehicle development order from a traditional car manufacturer and Yulon's first collaboration with an international car manufacturer, signifying a new chapter for Taiwan's automotive industry in the global market.

This collaboration adopts an OEM model, with Foxtron using its MIH platform to provide a modular and platform-based development framework, accelerating the product launch timeline. Although the specific vehicle model has not been announced, the market widely speculates it could be a crossover SUV like Model A or Model B.

Surge in Demand for EV Components, Yageo's Product Line Fully Benefits

As the penetration rate of electric vehicles continues to rise, automotive electrification has become an irreversible trend. According to industry data, each electric vehicle requires over 10,000 multilayer ceramic capacitors (MLCC), five to ten times more than traditional fuel vehicles. This change has directly boosted the demand for passive components. Yageo, the world's leading supplier of chip resistors and tantalum capacitors and the third-largest supplier of MLCCs, is a significant beneficiary of the Hon Hai and Mitsubishi collaboration.

Since Yageo announced a strategic alliance with Hon Hai in 2019, it has become a priority component supplier for the Hon Hai Group. Its product line includes resistors, capacitors, sensors, and power management ICs, and through its investment in Lite-On Technology, it has strengthened its presence in the power management field. These components are widely used in electric vehicles' power systems, infotainment systems, and advanced driver-assistance systems (ADAS), opening up vast export opportunities for Yageo.

Fuding Technology Ready, Yageo Channels Aid Expansion into European and American Markets

Fuding Semiconductor, a veteran MOSFET manufacturer in Taiwan, has long supplied power components to the Hon Hai Group and has recently received investment from the Yageo Group, becoming a member of both the "Hon Hai Army" and the "Yageo System." In recent years, Fuding has actively transformed, developing mid-to-high-end MOSFET and automotive IGBT product lines, with technology covering 1,200V high-voltage IGBT modules, 600V Schottky diodes (SBD), and 900V and 1,200V high-voltage MOSFETs, all of which are core components for electric vehicles.

In 2023, Yageo Chairman Pierre Chen became the chairman of Fuding, further strengthening their collaboration. Leveraging Yageo's global sales channels and customer resources, Fuding has begun sending product samples to European and American car manufacturers, breaking through the previous market limitations focused on Greater China and gradually expanding its operational scale. This strategic collaboration allows Fuding to more effectively enter the international electric vehicle supply chain and enhance its visibility in the global automotive semiconductor market.

Guochuang Semiconductor Steps In, Hon Hai and Yageo Deepen Cooperation

In addition to the bilateral cooperation between Yageo and Fuding, Guochuang Semiconductor, jointly established by Hon Hai and Yageo in 2021, also plays a key role in this electric vehicle collaboration. Guochuang specializes in designing and producing automotive power management ICs and power components, with its products already in mass production and undergoing multiple design-ins with car manufacturers and supply chain customers.

Guochuang's product line features silicon carbide (SiC) components, power ICs, and MOSFETs, which are crucial for improving the energy efficiency and durability of electric vehicles. Through Guochuang's technical support and product integration capabilities, Hon Hai, Yageo, and Fuding form a complete electric vehicle component supply chain, further solidifying Taiwan's strategic position in the global electric vehicle industry.

Foxconn signs major contract with Mitsubishi for electric cars, benefiting Yageo and Fuding Technology: Taiwanese companies are expanding into the European and American markets.

Key Updates

Yulon Motor and Mitsubishi are collaborating to develop electric vehicles and plan to expand into the Australian and New Zealand markets by 2026.

The Taiwan stock market experienced fluctuations but closed higher, with foreign investors continuing to buy financial stocks; Yulon will produce Mitsubishi electric vehicles, the housing market's completion surge reaches a 20-year high, and the CPI rose by 2.03% compared to the previous year.