Apple supplier Foxconn is planning to overhaul its management structure to get more senior executives involved in the running of its daily operations, a person with direct knowledge of the matter told Reuters news agency.
The move to appoint a new “operations committee” comes as Chairman and Founder Terry Gou is seeking to run in Taiwan’s 2020 presidential election. He also told Reuters in April that he planned to step down from Foxconn to pave the way for younger talent to move up the ranks.
The overhaul will mark 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.
“The good thing is it will no longer be a company ruled by one man and the decisions won’t be as dogmatic as they used to be,” the source said. “It will be a co-management model.”
Investors are keen for any insight into succession plans at the world’s largest contract manufacturer, whose business ranges from smartphone assembling to panel manufacturing, and what it means for plans laid out by Gou such as a $10 billion investment to create 13,000 jobs in Wisconsin and an $8.8 billion display factory in southern China.
Foxconn is already under the spotlight for having failed so far to meet job-creation targets in Wisconsin, a plan cited by US President Donald Trump as proof he was reviving American manufacturing. Reuters reported on Wednesday that Foxconn has moved more than 150 US jobs to Mexico.
Foxconn is set to reveal next week the new “operations committee” that will give senior executives from its units greater control, according to the person, who declined to be named as the news had not yet been made public.
The committee, which would be involved in running the daily operations of various Foxconn units - from Sharp Corp to Foxconn Interconnect Technology Ltd (FIH) - would include Sharp Chairman Tai Jeng-wu, Foxconn CFO Huang Chiu-lien, and FIH chairman Lu Sung-Ching, the source said.
Foxconn declined to comment until the conference on Tuesday.
A Sharp spokesman declined to comment, saying the firm does not comment on Foxconn or its management as Sharp and Foxconn are independent companies.
Shares in Foxconn, formally known as Hon Hai Precision Industry, have dropped around 24 per cent since Gou announced in April his plans to run for president. They closed up 0.1 per cent on Thursday, versus a 0.5 per cent decline in the broader market.
