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.
Liu also announced the development of a proprietary AI model named “FoxBrain,” tailored specifically for manufacturing.
Built using Meta’s Llama 3 and 4 models and trained on Foxconn’s internal data, this tool aims to automate workflows and enhance factory operations. The company plans to open-source FoxBrain and deploy it across all its facilities, continuously improving the model with real-time performance feedback.
Another innovation Liu highlighted was Foxconn’s use of Nvidia’s Omniverse to create digital twins of future factories. These AI-operated virtual factories are used to test and optimize layouts before construction begins, drastically improving design efficiency and effectiveness.
In addition to manufacturing, Foxconn is eyeing the electric vehicle sector. Liu revealed the company is working on a reference design for EVs, a model that partners can customize—much like Foxconn’s strategy with PC manufacturers. He claimed this approach could reduce product development workloads by up to 80%, enhancing time-to-market and cutting costs.
Liu closed his keynote by encouraging industry leaders to monitor these developments closely, as the rise of AI-driven automation could reshape the global labor landscape faster than anticipated.
