Foxconn's parent company: Considering the acquisition of Renault's stake in Nissan. The goal is cooperation rather than merger.

The parent company of Foxconn, Hon Hai Precision, expressed an open attitude towards acquiring shares in Nissan (RNLSY.US) from Renault, which may bring a ray of hope to this struggling Japanese car manufacturer. Hon Hai Chairman Liu Yangwei revealed to reporters during a company event on Wednesday that the company has been in contact with Nissan and Honda Motor Co., Ltd. Sponsored ADR (HMC.US) regarding potential cooperation. It was reported that the company had previously considered acquiring the 36% stake in Nissan held by Renault. The manufacturer, long known for producing iPhones and other electronic products for global brands, is actively expanding into new areas such as electric cars to address the weakening growth in smartphone sales. Reportedly, Hon Hai took a wait-and-see approach during discussions on business integration between Honda and Nissan. Currently, the two Japanese automakers are considering ending alliance negotiations. When asked whether Hon Hai would acquire Nissan shares held by Renault, Liu Yangwei stated, "If there is a need for operation, we will consider. But acquiring shares is not our goal, our goal is cooperation." Liu Yangwei's remarks briefly boosted Nissan's stock price, narrowing its losses on the Tokyo stock market, but it continued to decline afterwards. A Honda representative declined to comment on the meeting with Hon Hai, while a Nissan spokesperson stated that the company was aware of the reports but did not wish to comment further. For years, Nissan has faced problems such as frequent management changes and an aging product line. A merger with Honda could have created one of the world's largest automakers, strengthening its ability to respond to emerging competitors and the rapid changes brought about by battery technology innovation. In the Chinese market, local manufacturers led by BYD Company Limited (01211) are eroding the market share of Japanese automakers, while Japanese companies' supply chain systems built over decades are facing serious challenges in transitioning to electric cars. Shuji Hosoi, a senior strategist at Daiwa Securities, stated that Hon Hai's involvement could help Nissan sustain its operations, but "this does not necessarily guarantee job security or benefit the Japanese economy." He added that this is a personal opinion and does not represent the position of the securities firm, and "Nissan may face the risk of becoming like Sharp, primarily an assembly manufacturer." In 2016, the Japanese electronics manufacturer Sharp was on the brink of bankruptcy before receiving investment from Hon Hai. In the past year, Hon Hai has benefited from the surge in demand for servers from NVIDIA Corporation (NVDA.US) driving artificial intelligence development. However, in the field of electric cars, the world's largest electronics outsourcing manufacturer has not yet established a firm foothold. When asked about the possibility of a merger with Nissan, Liu Yangwei stated, "From Hon Hai's perspective, this is not a merger but cooperation. How do we cooperate with Japanese car manufacturers? We are meeting with many companies, including Nissan and Honda."