Foxconn eyes partnership with Nissan, not acquisition

Foxconn, the world’s largest contract electronics manufacturer, has clarified its intentions regarding Japanese automaker Nissan, stating that its primary goal is to establish a cooperative partnership rather than pursuing an acquisition.

Foxconn Chairman Young Liu addressed the matter during a recent company event, emphasizing that the company is primarily interested in exploring potential collaborations with Nissan in areas such as electric vehicles (EVs) and automotive technology.

“We are talking about cooperation with Nissan,” Liu stated. “Our main purpose is to talk about cooperation. Renault happens to own some stake in Nissan, and we discussed the stake.”

Foxconn’s interest in Nissan emerged amidst reports of the Japanese automaker’s ongoing discussions with Honda regarding a potential merger. However, those talks have since stalled, leaving Nissan open to exploring other partnerships.

While Foxconn has expressed interest in Renault’s stake in Nissan, Liu clarified that acquiring the stake is not the company’s primary objective.

“If there is a need to take on Nissan’s stake in order to achieve the cooperation, we will consider it,” Liu explained. “But buying the stake is not our purpose.”

Foxconn’s move towards the automotive industry aligns with its broader diversification strategy, which includes expanding into sectors such as EVs, semiconductors, and robotics. The company aims to leverage its manufacturing expertise and technological prowess to become a key player in the evolving automotive landscape.

“I think it is not a merger and acquisition case for Hon Hai, it is a cooperation case,” Liu said. “How can we cooperate with this Japanese car manufacturer?”

Foxconn has already established partnerships with other automakers, including Stellantis, and is reportedly in discussions with several other companies. The company’s focus on EVs is evident in its recent investments in EV-related technologies and manufacturing facilities.

“We will announce good news in EV within one or two months,” Liu hinted, without providing further details.

The potential partnership between Foxconn and Nissan could bring several benefits to both companies. For Foxconn, it would provide an entry point into the established automotive industry and allow it to gain valuable experience in EV development and manufacturing. For Nissan, it could offer access to Foxconn’s technological expertise and manufacturing capabilities, potentially accelerating its transition to electric mobility.

However, the details of any potential collaboration remain unclear, and it remains to be seen whether the two companies can reach a mutually beneficial agreement. Despite the uncertainty, Foxconn’s clarification of its intentions signals a clear interest in partnering with Nissan, rather than acquiring it. This approach suggests a focus on collaboration and mutual benefit, which could pave the way for a successful partnership between the two companies.