Foxconn announces leadership overhaul as chairman seeks Taiwan presidency (updated)

Foxconn Interconnect Technology

11/06/2019 08:12

* Nine execs from Foxconn units to have say in daily
operations 
    * Foxconn says it's well-positioned to tackle trade war
headwind
    * Executive says Wisconsin investment more important than
before
    * Company to hold investor conferences twice a year

    By Yimou Lee
    TAIPEI, June 11 (Reuters) - Apple supplier Foxconn  2317.TW 
on Tuesday announced a leadership overhaul that will see more
executives involved in the running of its daily operations, as
Chairman Terry Gou seeks to run in Taiwan's 2020 presidential
election.
    At its first investor conference in Taipei, Foxconn revealed
a new "operations committee" that will give nine senior
executives from the group's subsidiaries greater control.
    Reuters exclusively reported last Thursday on the overhaul,
which marks a major shift in Foxconn's corporate leadership that
has seen 68-year-old Gou hold a tight grip on the firm's daily
operations and strategic decisions.  urn:newsml:reuters.com:*:nL4N23E02I
    The move at the world's largest contract manufacturer also
comes after Gou told Reuters in April that he planned to step
down from Foxconn to pave the way for younger talent to move up
the ranks.  urn:newsml:reuters.com:*:nL3N21X1VE  urn:newsml:reuters.com:*:nL3N21Z151
    Foxconn on Tuesday told investors it was well positioned to
tackle headwind from ongoing the U.S.-China trade war. 
    "Our production capacity outside China is enough to meet
demand from the U.S.," said a member of Foxconn's proposed new
board, Liu Young-way, also known as Young Liu.
    He touted the group's ability to tackle what he called an
"increasingly tough" situation amid the trade war, citing the
company's production bases in 16 countries.
    The nine-person committee includes most members from
Foxconn's proposed new board, including Foxconn Chief Financial
Officer Huang Chiu-lien and Foxconn Interconnect Technology Ltd
 6088.HK  Chairman Lu Sung-Ching.
    The committee did not include Gou or the chairman of
Foxconn's Japanese electronics unit Sharp Corp  6753.T , Tai
Jeng-wu, who are both members of the new proposed board. 
    Foxconn did not provide a reason for their absence on the
committee.
    Two people with direct knowledge of the matter told Reuters
that Tai had resigned from the committee to avoid possible
conflict of interest between parent Foxconn and its Japanese
unit.
    On Tuesday, Liu also sought to address investors' concerns
on what the overhaul might mean for plans initially laid out by
Gou, including a $10 billion investment to create 13,000 jobs in
the U.S. state of Wisconsin.
    He said the Wisconsin investment was more important than
before, given the trade war. 
    Foxconn is already under the spotlight for not yet meeting
job-creation targets in Wisconsin, an investment cited by U.S.
President Donald Trump as proof he was reviving American
manufacturing. Reuters reported on Wednesday that Foxconn has
moved more than 150 U.S. jobs to Mexico.  urn:newsml:reuters.com:*:nL2N23A1MC
    
    TRADE WAR UNCERTAINTY
    Foxconn on Tuesday said it will utilise its "global
distribution" as well as "localised production" to tackle
growing uncertainty amid the escalating U.S.-China trade war.
    Liu also vowed to boost its manufacturing capability with
new technologies including fifth-generation (5G) telecoms
infrastructure, artificial intelligence as well as ultra
high-definition 8K technology.
    Addressing investors' long-time concerns about Foxconn's
approach to corporate transparency, the company announced a plan
to hold investor conferences twice a year.
    Shares in Foxconn, formally known as Hon Hai Precision
Industry Co Ltd, have dropped around 20% since Gou announced in
April his plans to run for president. They closed up 0.4%, in
line with the broader index  .TWII . 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
EXCLUSIVE-Foxconn plans management overhaul as Chairman Gou
seeks Taiwan presidency -source     urn:newsml:reuters.com:*:nL4N23E02I
EXCLUSIVE-Foxconn chairman Gou aims to step down to pave way for
younger talent     urn:newsml:reuters.com:*:nL3N21X1VE
Foxconn's Gou throws hat in ring for Taiwan presidency, with
blessing of sea goddess     urn:newsml:reuters.com:*:nL3N21Z151
EXCLUSIVE-Promising thousands of U.S. jobs, Foxconn offshored
155 to Mexico      urn:newsml:reuters.com:*:nL2N23A1MC
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Yimou Lee; Editing by Anne Marie Roantree and
Christopher Cushing)
 ((yimou.lee@thomsonreuters.com; +886-909-894-919; Reuters
Messaging: yimou.lee.reuters.com@reuters.net / Twitter: https://twitter.com/YimouLee))