Foxconn chairman Gou aims to step down to pave way for younger talent

Terry Gou plans to step down in the coming months to pave the way for younger talent to move up the company's ranks.

TAIPEI: The chairman of Taiwan's Foxconn, an assembler of Apple Inc's iPhones, said on Monday he plans to step down in the coming months to pave the way for younger talent to move up the company's ranks.

A change in leadership would come at a delicate time for the world's largest contract manufacturer, which is trying to reinvent itself to cut its reliance on Apple as smartphone sales plateau and as the iPhone maker diversifies its supplier base.

It would mark another top-level change at a tech firm in Greater China.

Jack Ma, co-founder of China's Alibaba Group, said in September he will step down as chairman in a year to allow for younger management. And Morris Chang, founder and chairman of Taiwan Semiconductor Manufacturing Co (TSMC), another Apple supplier, retired last year.

Terry Gou, speaking on the sidelines of an event in Taipei, said that while he planned to resign as Foxconn chairman, he hoped to remain involved in strategic decisions regarding the company's business.

When asked by Reuters if he would quit as chairman, Gou said he was moving in that direction, although any decision needed to be discussed with the company's board.

"I don't know where you got the information from. But I have to say, basically, I'm working towards that direction - to walk back to the second line, or retire," Gou said.

"I will be involved in the major direction of the company, but not involved in daily operations.

"I'm already 69 years old. I can pass down my 45 years of experience. That's the goal I set up - to let young people learn sooner and take over sooner and to replace my position sooner."

Gou said his plans would be discussed with the board of Foxconn, formally known as Hon Hai Precision Industry Co Ltd, in the coming months and shareholders would be told at the AGM in June.

A source with knowledge of the matter told Reuters that Lu Sung-Ching, the chairman of Foxconn Interconnect Technology Ltd , the electronic and optoelectronic connectors unit of Foxconn, was among the possible candidates to take over from Gou.