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.

Japanese automakers Nissan and Honda have announced plans for a merger that would catapult them to a top position in an industry that's in flux as it transitions away from its reliance on fossil fuels.

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.