Hon Hai Precision Industry, the Taiwan-based manufacturer of iPhones better known as Foxconn, is putting its interest in pursuing Nissan on hold while the Yokohama-based automaker is in negotiations for a potential merger with Honda, according to a person familiar with the matter.

The decision to pause comes after Foxconn sent a delegation to meet with Renault — which owns 36% of Nissan and will have a say in any tie-up — in France, people with knowledge of the matter said.

But the smartphone-maker, which has long-standing ambitions to break into the electric vehicle industry, is not giving up completely, preferring to see if the two Japanese marques make legitimate progress toward a deal before deciding on its next move, the people said, asking not to be identified discussing private decisions.