What happened: Terry Gou, founder and chairman of Foxconn, announced today he is handing the reigns of the world’s largest electronics contract manufacturer to a new operations committee. Gou, 68, was expected to withdraw from the daily operations of Foxconn since he announced his bid for president of Taiwan, where the company is based. He is expected to keep a seat at the board, but the company said at its first investors relations conference today that his presidential candidacy will affect his future role there.
Why it’s important: The news of Gou’s resignation has been expected since he announced his presidential bid. It comes a week after Foxconn unveiled a leadership overhaul and plans for increased transparency towards investors. The new nine-person committee is comprised of key figures in Foxconn’s various businesses, and speculation is high as to whether one of them will replace him as chairman of the board. As the largest assembler of iPhones, Foxconn is likely to undertake serious changes in its supply chain operations. The US-China tariffs impart a heavy burden on iPhones, which are mainly made in China. The Taiwanese company has said it is ready to shift production out of China.