TOKYO - The emergence of Taiwanese electronics giant Foxconn has become a key catalyst in the discussion of a potential Nissan-Honda merger. Having grown through iPhone production, the company is now pushing into the electric vehicle (EV) sector, led by a Japanese executive who once held top roles at major Japanese firms.
That executive is Jun Seki, currently serving as Chief Strategy Officer for Foxconn’s EV division. Previously, Seki was CEO of Nissan, then later president of Nidec, where he briefly succeeded founder Shigenobu Nagamori as CEO before stepping down after just over a year. His departure was widely viewed as a demotion. Foxconn then recruited Seki to lead its EV ambitions.
Foxconn’s entry into the auto sector is seen as one of the triggers behind Honda and Nissan’s decision to begin discussions on a possible management integration. With Nissan’s stock struggling and its performance deteriorating, Foxconn was reportedly exploring the possibility of acquiring the automaker. This pressure prompted both Nissan and Honda to accelerate their talks, spurred in part by fears within Japan’s Ministry of Economy, Trade and Industry over a foreign buyout of a domestic manufacturer.
Founded in 1974, Foxconn is the world’s largest electronics contract manufacturer, best known for assembling Apple’s iPhones. The company’s expansion has closely followed the global smartphone boom. In 2023, its revenue reached around 6.16 trillion Taiwan dollars, roughly 30 trillion yen. Foxconn also acquired Sharp in 2016, a move that once raised hopes for a revival of the Japanese electronics brand, though Sharp has since struggled amid changing technology trends such as the shift from LCD to OLED displays in smartphones.
Today, Foxconn is refocusing its Japanese investments on emerging sectors like EVs and AI. As the Honda-Nissan merger talks faltered, Mitsubishi Motors began discussions to outsource EV production to Foxconn. The strategy aims to cut production costs, shorten development cycles, and boost competitiveness. For Mitsubishi, outsourcing mitigates the risk of building new facilities that could become unprofitable if EV sales disappoint.
Foxconn sees EVs as its next growth pillar after smartphones. Its interest in the Japanese auto sector is reflected in its outreach to Nissan and Honda, and the company has already established partnerships with global automakers. However, the global EV race is intense. U.S. leader Tesla has long dominated the market, while China's BYD has quickly gained ground with affordable models. Japanese automakers, by contrast, are under pressure to rethink their EV strategies.
Nissan’s Leaf, once a trailblazer, now faces stiff competition. Japanese firms are known for their engineering and reliability, but EVs require a different approach — one that emphasizes software integration, platform scalability, and massive investment. That’s why Nissan and Honda had explored combining forces: to build up the financial firepower needed for next-generation vehicle development.
Industry observers say that while Toyota has the scale and capital to pursue a broad strategy spanning hybrids, gas vehicles, and EVs, others like Nissan, Honda, and Mitsubishi may not be able to afford that luxury. For these companies, forming alliances — including with tech players like Foxconn — may be key to surviving in an increasingly global and competitive EV market.
Source: Kyodo
