Hon Hai to set up 9-member operations committee

2019/06/11 12:22:43 fontsize-small fontsize-default fontsize-big
CNA file photo

CNA file photo

Taipei, June 11 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. is planning to set up an operations committee that will consist of nine members from the company and its subsidiaries to plot the conglomerate's future business expansion.

Hon Hai, known as Foxconn in the global market, said in a PowerPoint presentation to a small group of institutional investors Monday that the nine members of the operations committee will include four board member nominees: Lu Sung-ching (盧松青), Lu Fang-ming (呂芳銘), Liu Yang-wei (劉揚偉), Lee Chieh (李傑).

Lee and Lu Sung-Ching will represent Hung Ching International Investment, which is one of Hon Hai's institutional shareholders, on Hon Hai's board of directors.

Lu Fang-ming, vice chairman of Hon Hai and chairman of Asia Pacific Telecom, is in charge of 5G development at Hon Hai, and Liu is a key person in Hon Hai's semiconductor business development.

The committee will also include Hon Hai Technology Group Chief Financial Officer Huang Chiu-lien (黃秋蓮); Lin Chung-cheng (林忠正), a board director nominee of Hon Hai subsidiary Sharp Corp.; and Hon Hai's digital product sub-group chief Chiang Chih-hsiung (姜志雄).

Rounding out the committee will be Lin Cheng-hui (林政輝), who overseas Foxconn's China operations, and Hon Hai CFO Huang Te-Tsai (黃德財), according to the presentation.

Hon Hai said the nine-member operations committee will operate under the new board of directors that will be decided at the company's annual shareholders meeting on June 21.

Issues involving Hon Hai's leadership structure have been watched closely since Hon Hai Chairman Terry Gou (郭台銘) announced in-mid April his intention to go into politics and pursue the opposition Kuomintang nomination in the 2020 presidential election.

The company's stock price has fallen more than 20 percent since Gou announced his presidential bid because of worries over the company's future operations without Gou.

Although Gou has been nominated as one of the board members, he has said repeatedly he will not seek the chairmanship of Hon Hai and will remove himself from the front lines of the company's day-to-day operations.

The unveiling of the nine-member operations committee further appears to chart a collective leadership course for the company in Gou's absence, but some analysts expect it will be hard for Gou to retreat completely from the front lines because he still holds a 9.63 percent stake in Hon Hai.

Besides Gou's stepping back from his leadership role at Hon Hai, the company, a major assembler of Apple iPhones, has also been hurt by the escalating trade skirmish between the United States and China.

The company said in its briefing to institutional investors, however, that it is determined to adapt to the fast changing global market amid rising uncertainty because of the trade war and go beyond being a contract electronics maker.

In terms of industrial internet development, Hon Hai said it has installed more than 80,000 robots and other smart manufacturing equipment in its factories and owns more than 10,000 suppliers of critical components in its industrial Internet development.

Hon Hai also owns an industrial internet-focused subsidiary -- Foxconn Industrial Internet Co. Ltd. (FII) -- based in China that is active in a wide range of technologies, such as cloud-based computing, high performance computing, and 5G internet communication solutions, the company said in the briefing.

(By Chung Jung-feng and Frances Huang)
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