In a recent statement, Foxconn Chair Young Liu clarified that while acquiring shares is not the primary goal, it could be considered necessary for cooperation with the carmaker.

Liu's comments came after the collapse of takeover talks between Honda and Nissan, sparking renewed negotiations with Foxconn. Foxconn is expanding into the EV sector, designing and building vehicles for other brands.

Currently, Foxconn is in discussions with Renault, Nissan, and Honda regarding contract orders, with an announcement expected within one or two months.

This collaboration would mark Foxconn’s first partnership with a traditional carmaker outside Taiwan.

The potential deal has impacted Nissan’s shares, which dropped 6.3 per cent by early afternoon in Tokyo and have declined nearly 13 per cent this year.

Amidst intense competition from China and missing out on the hybrid boom in the US, Nissan is implementing a turnaround plan that includes cutting 9,000 jobs and reducing production capacity by a fifth.

The situation has been further complicated by Renault's ongoing reduction of its Nissan stake, which stands at 36 per cent, and plans to offload an 18.7 per cent share held in a French trust.

Foxconn’s EV division chief strategy officer and former Nissan executive, Jun Seki, recently met with Renault’s chief, triggering concerns within Nissan and leading to urgent negotiations with Honda.

Foxconn's potential investment follows the reactivation of talks with Renault, reported by the Financial Times. Nissan, however, holds the first right of refusal should Renault decide to sell its shares, and is also seeking its own strategic partner in the tech industry after failed merger discussions with Honda.