Foxconn chairman Young Liu has issued a stark warning about the future of low-end manufacturing jobs, suggesting that generative AI and robotics will eventually eliminate many of these roles. Speaking at the Computex conference in Taiwan, Liu emphasized that this transformation is not just technological but geopolitical, urging world leaders to prepare for the sweeping changes ahead.
According to Liu, wealthy nations have historically relied on two methods to keep manufacturing costs down: encouraging immigration to bring in lower-wage workers and outsourcing production to countries with lower GDP. However, he argued that both strategies are reaching their limits. With fewer low-GDP countries to outsource to and increasing resistance to immigration in many parts of the world, Liu believes that generative AI and robotics will be the next major solution to bridge this gap.
He cited Foxconn’s own experience as proof of this shift.
After integrating generative AI into its production processes, the company discovered that AI alone could handle up to 80% of the work involved in setting up new manufacturing runs—often faster than human workers. While human input is still required to complete the job, the combination of AI and skilled labor significantly improves efficiency. As a result, Foxconn’s human experts are now able to focus on more complex challenges rather than repetitive tasks.
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Liu also announced the development of a proprietary AI model named “FoxBrain,” tailored specifically for manufacturing.
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