According to media reports, Foxconn (the parent company of Hon Hai Precision Industry) is in advanced talks with Japanese automaker Nissan to establish a strategic partnership, with plans to sign an electric vehicle (EV) cooperation agreement within the next two months. The news has sparked significant market interest, with analysts suggesting that the collaboration could bolster Foxconn's position in the rapidly growing new energy vehicle sector, while providing Nissan with a much-needed boost to enhance its competitiveness in the EV market.
Meanwhile, Foxconn's 2024 financial report revealed a 7% year-on-year increase in annual net profit, reaching 152.7 billion New Taiwan dollars (approximately 33.55 billion Chinese yuan). While the results fell slightly short of market expectations, the company's AI server business emerged as a standout performer, driven by robust demand. Foxconn anticipates that AI server shipments will continue to grow at a double-digit rate in 2025, solidifying the segment as a key growth driver.
In recent years, Foxconn has been aggressively expanding its footprint in the electric vehicle industry, seeking partnerships with established automakers. The potential collaboration with Nissan gained traction after merger talks between Nissan and Honda collapsed in February. Foxconn Chairman Liu Yangwei previously indicated that the company is open to acquiring Renault's stake in Nissan and is exploring opportunities for technological collaboration, though he ruled out the possibility of a full merger. For its part, Nissan is actively pursuing new partnerships to strengthen its position in the evolving EV landscape.
As the global automotive industry shifts toward intelligent electrification, technology giants are increasingly entering the new energy vehicle market. For example, Chinese smartphone maker Xiaomi recently launched its first electric car, while Alphabet's subsidiary Waymo continues to make strides in autonomous driving technology. In this context, Nissan aims to not only provide manufacturing expertise but also play a central role in the development and commercialization of new EV products through its partnership with Foxconn.
In addition to its strategic moves, Nissan is undergoing a management reshuffle. The company's board is reportedly set to discuss the potential replacement of current CEO Makoto Uchida, with three foreign executives-Chief Financial Officer Jeremie Papin, Chief Performance Officer Guillaume Cartier, and Chief Planning Officer Ivan Espinosa-under consideration as potential successors. The leadership change could significantly influence Nissan's future direction.
Against this backdrop, Foxconn's latest initiative adds a new layer of intrigue to the global electric vehicle industry. Chairman Liu Yangwei hinted that the company will unveil "major developments" in its EV business within the next one to two months. This announcement could mark a pivotal step in Foxconn's ambitious push into the new energy vehicle market, while providing Nissan with fresh momentum to revitalize its business.
