Foxconn appoints new chairman as Gou steps down to run for Taiwan president

25, Jun. 2019

Foxconn founder Terry Gou steps down as chairman of the world’s largest electronics contractor to run for Taiwan president. He is replaced by Liu Young-way.
Foxconn founder Terry Gou steps down as chairman of the world’s largest electronics contractor to run for Taiwan president. He is replaced by Liu Young-way.

TAIPEI, NNA – Foxconn Electronics Inc., the world’s largest electronics contractor, has promoted chip-unit-head Liu Young-way to chairman, replacing founder Terry Gou who has stepped down to run to be Taiwan’s president.

Gou, 68, told the company’s annual general shareholders’ meeting on Friday that he will remain on the board while he campaigns for January’s election. Later, at a news conference, he said he was confident about the firm’s performance under a new nine-member operations committee. “It’s time to leave the stage for young talent,” he said.

Liu, 63, will also serve as a director of Japanese electronics firm Sharp Corp., which is owned by Foxconn.

Gou said he believed Liu and new vice-chairman Jay Lee would help Foxconn integrate hardware manufacturing, software development, artificial intelligence, the Internet of Things and semiconductor production.

Foxconn, formally known as Hon Hai Precision Industry Co., assembles a major portion of products in China for clients such as Apple, is trying to work out business strategies as the U.S.-China trade dispute drags on. The company has denied that it is moving production out of China.

Foxconn registered an unaudited consolidated revenue of 1.44 trillion New Taiwan dollars (US$46.4 billion) in the first four months of 2019, up 14.7 percent from the same period last year.

Taiwan's export-led economic growth has slowed due to sluggish global chip demand. Its shipments to the United States accounted for 38.6 percent of exports in May, and those to mainland China 14 percent.

Gou is seeking to represent the China-friendly opposition Kuomintang (KMT) party, pledging he will “rescue nearly-bankrupt Taiwan and secure a chance for the island to survive.”

“I will contribute the resources I’ve garnered during the past 40 years to Taiwan and will fight for a prosperous future in the next four years,” he said Friday.