TAIPEI (Taiwan News) — Foxconn Chair Young Liu (劉揚偉) said Tuesday that the company evaluates startup investments based on five principles, including market timing, team capabilities, strategic fit, clear explanations, and plans for creating value after investment.
Speaking at the Taiwan Venture Capital and Private Equity Equity Summit, Liu said startups do not need to be profitable immediately but must show revenue potential, per CNA. He said Foxconn strengthens its post-investment management through value creation and capital discipline.
Liu explained that Foxconn’s investment decisions focus on team quality, business fundamentals, and exit strategies. He said timing and team capabilities are especially important, as entrepreneurs must prove their technology has value.
Liu said Taiwan’s startup ecosystem differs from Silicon Valley, where investors often focus on future potential and embrace unconventional ideas. He said Taiwanese investors stress past profitability, adding that companies such as Amazon and Tesla might have struggled to grow in Taiwan because they were not profitable in their early stages.
Liu also discussed the rise of “sovereign AI data center supply chains,” saying geopolitical tensions are pushing countries to localize data center infrastructure, per UDN.
Liu said the shift is challenging the traditional model of producing goods in one location and selling them globally. He urged Taiwan’s industries to adapt to a more decentralized manufacturing environment.
