TAIPEI, April 17 (Reuters) - Taiwan's Foxconn

has this month started a rotating chief executive system in an

overhaul of its management designed to nurture successors of the

world's largest contract electronics maker, chairman Young Liu

said on Wednesday.

Reuters exclusively reported last week that major Apple ( AAPL )

supplier Foxconn was considering introducing a rotating

chief executive system in a move to boost corporate governance

by separating the role of chief executive from the chairperson

as well as to develop future talents.

Responding to reporters' questions in Taipei, Liu said in

order to have sustainable development Foxconn must have

"succession planning" in place and that the rotating system

could help develop future talents.

Liu said Foxconn has chosen an executive to fill that role

from among leaders of its six core businesses, which include

smartphones, personal computers and televisions. He did not say

who has taken on the new role.

"Through the rotation they can further understand operations

of the company," Liu said.

Liu, who has held both roles of chairman and chief executive

since 2019, said the rotating CEOs will oversee the core

businesses but exclude the operations of major listed

subsidiaries such as Foxconn Interconnect Technology ( FITGF ),

FIH Mobile ( FXCNF ) and Foxconn Industrial Internet

.

Liu took on the chairman and CEO roles following the

retirement in 2019 of billionaire founder Terry Gou, who founded

the company in 1974 and had both titles during most of his

tenure.

One source briefed on the matter has told Reuters the change

could mark the end of a "one-man rule" system in Foxconn by

establishing a structure in which managers take turns to oversee

Foxconn's operations that include hundreds of subsidiaries and

operations in more than 20 countries.