Foxconn's Liu Young tipped to replace Terry Gou as next chairman: Report

The world's largest contract manufacturer Foxconn is poised to nominate the head of its chip business as chairman to succeed Terry Gou, who plans to run in Taiwan's presidential election, two people with direct knowledge of the matter said.

Liu Young is also a board member of Foxconn's Japanese electronics unit Sharp Corp.

The nomination would come after Gou told Reuters in April he planned to step down as chairman of the Apple Inc supplier so younger talent could move up the Taiwanese firm's ranks.

Gou is set to retain a seat on the proposed board at Foxconn, formally known as Hon Hai Precision Industry Co Ltd.

However, he told reporters last week he would resign as chairman of the board to demonstrate his determination to run for election.

A company filing last week showed proposed candidates for Foxconn's new board included Gou and Liu, as well as Sharp Chairman Tai Jeng-wu and Foxconn Interconnect Technology Ltd Chairman Lu Sung-Ching.

The proposed board is subject to shareholder approval at a meeting in June before a chairman can be elected.

The company did not immediately respond to a request for comment on Monday. The two people with knowledge of the matter declined to be identified, saying the matter was still private.