Terry Gou: the fiery gadget chief guns for top job

Terry Gou, the head of a $41bn gadget assembly empire, has stepped back from his role to contest the presidency of Taiwan. Will that disturb the island’s fragile peace with China? Jane Lewis reports.

944-Gou-634

Gou: fierce, but with great foresight

2016 The Asahi Shimbun

"The man who made your iPhone wants to run Taiwan," says The New York Times and all, apparently, because of a sea goddess. The mercurial founder of electronics giant Foxconn has thrown his hat into the country's presidential race, claiming that the Chinese sea goddess Mazu encouraged him to "come forward", all the better to support "peace" across the Taiwan Strait.

Terry Gou, 68, is a huge employer in China, having built his $41bn empire assembling gadgets for Apple, Sony and many others in vast factories spread like "mini-cities" across the country. Renowned for his hard-driving ethos, he hit the headlines in 2010 when more than a dozen Foxconn workers committed suicide, says Bloomberg. In America, where Foxconn is also a big employer, Gou has built a strong rapport with President Trump.

Quite how that will survive him representing Taiwan's "China-friendly" Kuomintang (KMT) party in next year's election remains to be seen. Far from bringing "peace", Gou's intervention has raised the temperature in the debate about Taiwan's "fragile relations" with both countries.

Disruption is a speciality

Disruption has always been a Gou speciality. The son of a policeman from the mainland province of Shanxi, who fled Mao's communists in 1949, "his is a true rags-to-riches tale". After cutting his teeth as a shipping clerk, Gou struck out alone aged 23 with a $7,500 loan from his mother and, in 1974, began making plastic knobs for TV sets. "To drum up more business, he went on an 11-month tour of the US in the early 1980s, dropping in on companies unannounced, like a door-to-door salesman," notes Bloomberg. The tactic worked.

Foxconn rode Taiwan's export-driven boom, tirelessly expanding into game consoles, personal computers and smartphones, "squeezing out sometimes formidable incumbents in those sectors", says the FT. Gou's "fierce personality" helped, but so did his foresight. His pairing of American demand for gadgets with cheap Asian labour was decisive, says Bloomberg. Many manufacturers hesitated to move production to the mainland when it opened up in the 1980s, but Gou acted quickly he set up his first plant in Shenzhen in 1988,the year Beijing promisednot to nationalise Taiwanese investments.

Make Taiwan great again

Many Taiwanese may be open to the ideaof a businessman running the country, says the FT. But just as many view Gou as a potential threat to democracy. The 2020 election promises to be interesting.

Recommended

Guillaume Pousaz of Checkout.com: the surfer dude catching the fintech wave
People

Guillaume Pousaz of Checkout.com: the surfer dude catching the fintech wave

Guillaume Pousaz moved to California to pursue his love of surfing, and landed in Silicon Valley. He then rode the fintech gold rush to a multi-billio…
23 Jan 2022
Tim Cook: the man who filled Steve Jobs’ shoes at Apple
People

Tim Cook: the man who filled Steve Jobs’ shoes at Apple

No one expected much from Tim Cook when he took over the top job on the Apple founder’s death. But he has quietly led the firm to extraordinary new he…
15 Jan 2022
Hu Xijin: the silencing of China’s troll king
People

Hu Xijin: the silencing of China’s troll king

Hu Xijin had been described as the only man in China who could speak his mind – not least because his mind was as one with the ruling party – and what…
8 Jan 2022
The faces of 2021
People

The faces of 2021

It has been an especially turbulent year in politics, monetary policy and new stockmarket listings. Four key movers and shakers caught our eye
29 Dec 2021

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022