Mitsubishi Electric, ME Innovation Fund Invests in Formic Technologies Inc.

Starts to consider a new business model to increase value for customers

TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today that its ME Innovation Fund has invested in Formic Technologies Inc., a U.S.-based startup company that designs, develops, and maintains industrial robots, offered through a subscription-based sales model. This is the eighth investment that the fund has made to date.

In the manufacturing and logistics sectors, efforts to automate processes in response to labor shortages are rapidly advancing, leading to increased demand for industrial robots. However, the high up-front costs associated with deploying robots and the challenge of finding and training skilled workers have become major obstacles for many companies.

Formic Technologies addresses these issues by offering a comprehensive range of services that include the deployment, installation and maintenance of automation systems using industrial robots for tasks such as palletizing and packaging. Utilizing proprietary software, Formic Technologies provides optimized solutions tailored to the individual needs of clients, primarily small and medium-sized businesses. By combining these solutions with a unique financing model and subscription-based service, Formic Technologies significantly reduces the burden on customers related to the deployment and maintenance of industrial robots, thereby contributing to the acceleration of automation in the manufacturing sector to address challenges such as labor shortages.

Through its investment in Formic Technologies, Mitsubishi Electric aims to develop a new business model that evolves its automation solutions into more accessible formats for its customers going forward.

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