Foxconn Denies Rumors of Terry Gou’s Chinese Debt

terry gou
(From left) Christopher Murdock, Wisconsin Gov. Scott Walker, US President Donald Trump, Terry Gou, and Paul Ryan at the groundbreaking for the Foxconn plant in Wisconsin in 2018. Photo by Shealah Craighead via Wikimedia Commons

Rumors have circulated around Foxconn (Hon Hai Precision Industry Co., Ltd.) founder Terry Gou since he finally ended his presidential bid. Most recently, an online rumor spread that the 68-year-old Gou and his company had borrowed NT$1.2 trillion (US$38.6 billion) from Chinese banks and his assets would be frozen, thus leading to his decision to run for president of Taiwan.

Taiwan-based electronics manufacturer Foxconn was forced to release a statement on Monday evening to dispel the the rumors. The company called the rumors malicious and false. It added that such large loans do not exist.

Furthermore, the company noted that it is approaching peak season and it plans to ramp up operations in China. Foxconn has no plans to lay off some 50,000 employees at its Zhengzhou plant.

The company also denied rumors that its equipment had been seized in India and Vietnam. It added that plans for factory development in both countries remains on track.

Foxconn also addressed the matter of Sakai Display Products (SDP) in Guangzhou, which it noted was Terry Gou’s private investment and had no relation to Foxconn. Gou has since divested his interest in the company. Gou held a 50% stake in the company, according to Nikkei Asian Review. Foxconn holds a 25% stake in SDP through Sharp. Earlier this month, SDP postponed its US$8.5 billion LCD production line target.

The company added that it may be forced to take legal action in the future against such unfounded rumors spread online.

Be the first to comment

Leave a Reply