Foxconn Technology Group, also known as Hon Hai Precision (OTC:HNHPF)  Apple Inc.‘s primary iPhone manufacturer, confirmed Wednesday it would consider acquiring Renault’s stake in Nissan Motor Co. ( NSANF ) as part of a broader strategy to expand its electric vehicle manufacturing business.

What Happened: Chairman Young Liu revealed the company has held discussions about acquiring Nissan shares, though emphasized that any potential stake purchase would be contingent on securing EV manufacturing partnerships with either Nissan or Renault, reported the Financial Times.

“If [taking a stake] is necessary for co-operation, we will consider it, but buying shares is not our main goal,” Liu said.

The Taiwanese contract manufacturer is targeting an announcement of a cooperation deal within two months, with Renault, Nissan, and Honda Motor Co. ( HMC ) among potential partners. The news sent Nissan shares down 6.3% in Tokyo trading.

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Why It Matters: This development comes as Renault looks to divest half of its 36% stake in Nissan, currently held in a French trust, following their alliance restructuring in 2023.

Former Nissan executive and current Foxconn EV division chief strategy officer Jun Seki reportedly met with Renault CEO Luca De Meo in December to discuss the potential share acquisition.

The talks emerge amid broader industry shifts, with Nissan recently ending merger discussions with Honda ( HMC ) that would have created the world’s fourth-largest automotive group.

Nissan faces mounting pressure from Chinese competition and has announced plans to cut 9,000 jobs and reduce production capacity by 20% as part of its turnaround strategy.

For Foxconn, securing a deal with either Renault or Nissan would mark its first partnership with a traditional automaker outside Taiwan, potentially accelerating its expansion into EV contract manufacturing beyond its current partnerships with startups.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.