Hon Hai Precision Industry, the iPhone maker known as Foxconn, is in talks with Nissan Motor’s biggest shareholder Renault about its willingness to sell its shares in the Japanese automaker, Taiwan’s Central News Agency said, citing people it didn’t identify.

Nissan and fellow Japanese carmaker, Honda Motor, are exploring a merger, people familiar with the matter said Wednesday, that would create a rival to Toyota Motor in Japan and better position the combined company to face competitive challenges around the world.

One potential spanner in the works however is Foxconn, which separately is said to have approached Nissan about acquiring a stake. Foxconn has been investing heavily in factories to build electric vehicles and Nissan, which has slashed its earnings forecasts and is culling 9,000 jobs globally, needs a financial rescue.