The third court hearing in the ongoing bonus dispute between former Sharp Corporation chairman and veteran Foxconn executive Cheng-wu Dai and Foxconn Precision is scheduled for October 13 at the New Taipei District Court.
The lawsuit centers on a contested bonus agreement allegedly signed during Dai's tenure as Sharp chairman with Foxconn founder Terry Gou, involving a payment reportedly up to NT$1.2 billion (approx. US$39.5 million). The case arose after Foxconn deemed the contract ineffective due to a lack of board approval. Dai initiated legal action in early 2025, seeking payment based on the contract terms.
Dai's legal team has requested testimony from Terry Gou's private aide, Hongren Zhuang, to verify the validity of the bonus agreement. However, Zhuang's extended overseas absence delayed prior hearings, leading to the rescheduling of the session to mid-October. Industry observers are watching closely to see if this hearing will help establish the case's factual basis.
During litigation, the court suggested resolving the dispute through a consultancy arrangement where Foxconn would pay fees instead of bonuses. Foxconn declined, emphasizing the need to uphold corporate governance standards, which ultimately caused mediation to fail.
On October 7, Foxconn Technology Group issued a statement reaffirming its commitment to legal compliance and corporate governance, declaring it will refrain from further public comment as the case proceeds through the courts.
Market analysts note that while the claimed amount has been halved to NT$600 million, the case implicates broader corporate governance issues beyond financial sums. Foxconn's stance indicates it is unlikely to accept payment obligations related to the disputed contract under any guise.
Article translated by Jingyue Hsiao and edited by Jack Wu
