Foxconn Eyes Collaboration, Not Acquisition, with Nissan Amid Industry Shakeup

Foxconn, the world's largest contract electronics maker and Apple's primary iPhone producer, has expressed interest in collaborating with Nissan, a key player in the automotive industry. The Taiwanese company announced its aim to partner with Nissan rather than acquiring it, as confirmed by Foxconn's Chairman Young Liu. This development marks a significant shift in the automotive landscape as companies face mounting challenges from electric vehicle manufacturers like China's BYD.

Nissan, which is partly owned by Renault with a 36 percent stake, including 18.7 percent held in a French trust, is open to exploring new partnerships. The company is currently at a crossroads after complicated negotiations with rival Honda to establish the world's fourth-largest automaker. Despite these challenges, Nissan remains receptive to potential collaborations, such as the one proposed by Foxconn.

Foxconn seeks to diversify its business by venturing into the electric vehicle sector. However, it has made it clear that it will not become an automobile brand. Instead, Foxconn plans to offer commissioned design and manufacturing services. The company's discussions with Nissan represent its first public comments on the potential partnership. During a recent meeting at Foxconn's corporate headquarters in New Taipei, Chairman Young Liu emphasized the company's strategic intent.

"Purchasing its shares is not our aim; our aim is cooperation." – Young Liu

The potential collaboration comes at a time when the car industry is undergoing significant changes, driven by competition from new electric vehicle entrants. While Nissan's shares have seen a decline of approximately 7 percent, Foxconn's shares traded about 1 percent lower. Both Nissan and Honda are expected to release their quarterly financial results on Thursday, which could provide further insights into their current positions and future strategies.

Foxconn's interest in cooperation extends beyond Nissan; the company is also considering collaboration with Renault due to Renault's substantial stake in Nissan. Although purchasing Nissan shares is not Foxconn's primary goal, it remains open to acquiring a stake if necessary for successful cooperation.