TAIPEI (Taiwan News) — Taiwan's Foxconn could partner with Nissan after the Japanese automaker's proposed merger with Honda failed.

Japan's third-largest carmaker, Nissan, backed out of negotiations with the second-largest, Honda, on Thursday, per Reuters. Nissan, whose profits dropped 90% last year, has struggled to survive as it competes with electric vehicles, software-driven cars, and rising Chinese automakers.

Two sources said the company is now open to working with partners, including tech companies and Taiwan’s Foxconn, reported Nikkei Asia. As the world's largest contract electronics maker, Foxconn has sought to move into the EV business.

Foxconn reportedly approached Nissan about a deal in December but was rejected. Now that the door is open again, the Taiwan company could approach Nissan as a strategic sponsor.

In addition, Foxconn could also propose an acquisition or takeover. Foxconn could build an EV supply network in Asia with Nissan, the report said. Nissan and TSMC have both built major production facilities in Japan’s Kyushu.

As software-defined vehicles now dominate the auto industry, Nissan could benefit from a partnership with Foxconn, which can procure some of the most advanced semiconductors, Itochu Research Institute researcher Sanshiro Fukao said. In return, Foxconn could use Nissan’s surplus production capacity for its contract manufacturing business.

The Japanese ministry will screen any deal between Nissan that involves investments from abroad.