TAIPEI (Taiwan News) – Since Foxconn chief, Terry Gou (郭台銘), announced his candidacy as a challenger for the Kuomintang’s presidential primary in early April, Foxconn has suffered a steep decline in market value.
Since Gou declared his candidacy for president, Foxconn’s shares have dropped by NT$112.29 billion (US$3.6 billion), which is roughly equivalent to cost of two Taipei 101s, reports China Times.
Gou acknowledged the precipitous drop in market value in comments to the press on May 10, explaining his company’s troubles by referencing the escalating U.S.-China trade war. Gou declared that if Taiwan does not properly manage its economic affairs and take a leading role in the international trade conflict, many more Taiwanese companies will suffer similar losses.
Observers should not worry too much about Foxconn’s performance on the stock market, because according to Gou, if he is elected he would fundamentally transform the economy of Taiwan, and help all Taiwanese companies make a collective “great leap forward (大躍進),” reports China Times.
Gou suggests that Taiwan’s economy can be re-energized by pursuing more Free Trade Agreements with trading partners in the region.
On Monday (May 13), Reuters reported that the Foxconn boss is preparing to give up his position as chief executive officer of the company to the head of the company’s chip-manufacturing group, to 63 year old Liu Young.
Gou confirmed last week that he was stepping down and would not seek to return to Foxconn’s executive board. The possible replacement of Liu Young, who is considered a somewhat junior level executive has reportedly surprised many.
However, since joining the corporation in 2007, Liu has become a trusted advisor to Terry Gou, reported Reuters, citing an anonymous source.