Foxconn announced plans to revamp while Terry Gou seeks Taiwan presidency

Apple's supplier, Foxconn, plans to reorganize its management structure to involve more senior executives in the management of its day-to-day operations, a person with direct knowledge of the issue told Reuters.

The proposal to name a new "Operations Committee" comes as President and Founder Terry Gou seeks to run for the 2020 presidential election in Taiwan. In April, he also announced to Reuters that he was planning to withdraw from Foxconn to allow young talent to climb the ladder.

This overhaul will mark a major shift in Foxconn's leadership, which saw Gou, 68, closely monitor the company's day-to-day operations and strategic decisions.

"The good thing is that it will no longer be a one-man society and that decisions will not be as dogmatic as before," the source said. "It will be a model of co-management."

Investors are excited to know about the succession plans of the world's largest manufacturer, whose activities range from badembling smartphones to panel manufacturing, and what that means for Gou's projects. such as a $ 10 billion investment to create 13,000 jobs in Wisconsin and $ 8.8 billion in display plant in South China.

Foxconn is already in the spotlight for not having so far failed to achieve the job creation goals in Wisconsin, a plan cited by US President Donald Trump as proof that He was reliving American manufacture. Reuters reported Wednesday that Foxconn has transferred more than 150 US jobs to Mexico.

Foxconn is expected to unveil next week the new "Operations Committee" which will give senior managers of its units greater control, according to the person who refused to be named because the information had not yet been made public.

The committee, which would be involved in the daily operations of different units Foxconn – from Sharp to Foxconn Interconnect Technology Ltd. (FIH) – would include Sharp's chairman, Tai Jeng-wu, Foxconn's chief financial officer, Huang Chiu-link, and FIH chairman Lu Sung-Ching, said the source.

Foxconn declined to comment until Tuesday's conference. A spokesman for Sharp declined to comment, saying the company did not comment on Foxconn or its management, Sharp and Foxconn being independent companies.

Although the size of the new committee has not been finalized, an internal proposal must include up to 10-11 senior executives of Foxconn units, added the person, adding that the committee would report to the new council proposed by Foxconn.

According to Reuters, in May, the head of the information processing unit, Liu Young, was about to replace Gou as chairman.

The source said Gou would not sit on the committee. Foxconn previously stated that Gou would be a member of the new board.

At Tuesday's conference, Foxconn is also expected to announce plans to hold investor conferences regularly. This source is intended to address the concerns expressed by Gou's transparency strategy, including the lack of precision of investment decisions in succession plans.

"Foxconn plans to engage regularly with its investors, stakeholders and the general public on areas of common interest," the company said.

At the conference, which will be led by Liu, Foxconn aims to address concerns about China's escalation in the United States. commercial war, with the intention of using its "globalized" production chains from Southeast Asia to India to reduce its risks in China, said this source.

Foxconn will also commit to using new technologies, including 5G telecommunication infrastructure and artificial intelligence, to reorganize its production capabilities, said the manager.

Foxconn shares, formerly known as Hon Hai Precision Industry, have fallen about 24% since Gou's announcement in April of his intention to run for president. They closed up 0.1% Thursday.