Foxconn Changing Structure As CEO Departs & Clients Call For China Exit
Foxconn is preparing to shift to a committee-directed management structure as its founding CEO departs the company to run for the Taiwan presidency, while key clients ask them to slow production and move some manufacturing out of China.
Apple recently asked its partners to investigate moving up to a third of production out of China, but with many factories around the world, Foxconn has said it is ready to do so.
On the other side of the coin, Huawei has recently asked the company to slowdown smartphone production as it prepares for its smartphone shipments to fall as much as 60 per cent.
Last week, the company held its first ever investor relations conference as it prepares for the departure of the man who has acted as the company’s face and director since its inception.
CEO Terry Gou founded Foxconn in 1974, and has since grown it to become the largest manufacturer of electronics for technology giants like Apple, Google, and Huawei, amassing a reported personal net worth close to US$7 billion in the process.
Earlier this year he announced he would step away from the company to seek nomination from Taiwan’s pro-China opposition party to run for President.
His role will be replaced by the appointment of a new chairman and a nine person committee, according to Bloomberg.
The change from a sole director to committee-directed management structure comes as an additional challenge for Foxconn, as the tech industry faces a potential slowdown in the maturing smartphone market, and US tariffs place pricing pressure on products coming into the country from China, where Foxconn has more factories than in any other country.