Hon Hai Precision Industry Co., the largest assembler of Apple Inc.’s iPhones, has named Young Liu its new chairman to replace founder Terry Gou.

Hon Hai said the semiconductor division chief’s appointment takes effect July 1, taking up a post vacated by Gou. The Taiwanese billionaire is stepping down to focus on winning a party nomination to compete in the 2020 Taiwanese presidential elections. Hon Hai’s shares slid more than 1%.

Gou remains a board member and largest shareholder, but formally handed the company's leadership over on Friday during the company’s annual general meeting in Taipei.

Liu takes the lead of Foxconn as U.S.-Chinese tensions are raising fears about the impact on the company's plants, most of which are located in China. Washington is threatening to hit Beijing with new tariffs on about $300 billion worth of Chinese goods including phones and laptops -- directly affecting Hon Hai’s business with Apple and the world’s biggest electronics brands.

The billionaire founder of Hon Hai asked Apple to move part of its sprawling production chain from China to neighboring Taiwan.

“I am urging Apple to move to Taiwan,” said Terry Gou, the largest shareholder in Hon Hai Precision Industry Co., answering a question about whether Apple will shift production away from China. “I think it is very possible,” he said without elaborating.