Jeng-wu Tai, former Sharp CEO and retired Foxconn Vice President, has personally clarified to DIGITIMES that his ongoing lawsuit against Foxconn does not involve the company's former chairman Terry Gou, despite earlier rumors suggesting otherwise.
According to local media reports in late December 2024, Tai was reportedly filing a civil lawsuit demanding Foxconn honor a reward agreement and pay over NT$1 billion (US$30.6 million). The New Taipei District Court has mandated a four-month mediation period for the case.
In response to the lawsuit, Foxconn issued a public statement on January 20, 2025, indicating that the case would be handled according to legal and regulatory principles.
Speaking to DIGITIMES on January 22, 2025, Tai emphasized that while he had undergone three unsuccessful mediation sessions with Foxconn, Terry Gou was not involved in the proceedings. Subsequently, the case was submitted to the court for further adjudication.
The dispute stems from a reward agreement worth up to NT$1.2 billion that Tai and Gou signed when Tai was appointed to lead Sharp's turnaround efforts in Japan. The fulfillment of this agreement has become the central point of contention between Tai and Foxconn.
Source: Sharp; compiled by DIGITIMES, January 2025
During a court hearing on January 13, 2025, both parties reportedly agreed to halt the litigation and end the legal process. The case will be considered withdrawn if no further proceedings take place by April 2025.
Under Tai's leadership from 2016 to 2020, he implemented a series of reforms that improved Sharp's performance and brand, successfully leading the company back to the first section of the Tokyo Stock Exchange. He officially retired in 2022.
However, Sharp has encountered significant challenges following Tai's retirement. Due to the decline in the LCD panel market and market oversupply, the company was forced to close the LCD panel production lines at its Sakai plant and transform the facility into an AI data center.