Hon Hai Precision Industry Co., the Taiwan-based manufacturer of iPhones known as Foxconn, is putting its interest in pursuing Nissan Motor Co. on hold while the Japanese automaker is in negotiations for a potential merger with Honda Motor Co.

Foxconn, the Taiwanese electronics giant behind Apple’s iPhone, wants Nissan—the problem is, so does Honda.Eager to expand its electric vehicle footprint, Foxconn has already approached Nissan directly about acquiring a stake in the Japanese automaker.

Facing extreme competitive pressure from the rise of Chinese EV makers, the Nos. 2 and 3 Japanese automakers turn to each other to build strength.