Foxconn Industrial Internet Co Ltd (FII, 富士康工業互聯網), a unit of the world’s largest contract manufacturer, yesterday became China’s biggest domestically listed tech company by market cap as its shares soared by the maximum 44 percent on their debut on the Shanghai Stock Exchange.
The China based Internet subsidiary of Hon Hai Precision Industry Co (鴻海精密) opened about 20 percent higher than the initial public offering (IPO) price of 13.77 yuan at 16.52 yuan, quickly climbing to 19.83 yuan.
With its strong start, FII saw its market capitalization rise from 271.2 billion yuan (US$42.3 billion) to more than 390.5 billion yuan, edging out video surveillance product supplier Hangzhou Hikvision Digital Technology Co (杭州海康威視數字技術) as the tech stock with the largest market cap among yuan-denominated A-shares listed in Shanghai and Shenzhen.
Photo: Reuters
Investors have been upbeat about FII’s future movement on the Shanghai Stock Exchange, anticipating that its market value would continue to increase, dealers said.
The optimism is based in part on FII’s strategic partnership with a group of Chinese business heavyweights to which it has issued new shares, dealers said.
The strategic partners include e-commerce giant Alibaba Group Holding Ltd (阿里巴巴), search engine Baidu Inc (百度) and online services provider Tencent Holdings Ltd (騰訊).
Photo: Reuters
FII’s listing is part of an effort by Hon Hai, known globally as Foxconn Technology Group (富士康), to integrate hardware production with software development capabilities, such as for cloud computing, Internet of Things, big data and artificial intelligence, with its contract electronics operations to expand beyond manufacturing.
FII’s IPO raised 27.12 billion yuan, which Hon Hai said is to be used for investment in its new software-based areas of interest in China.
On Thursday, FII reported a 19.78 percent year-on-year increase in consolidated sales in the first quarter of the year to 77.69 billion yuan and a 1 percent rise in profit from a year earlier to 2.63 billion yuan.
FII has forecast consolidated sales of between 146.06 billion yuan and 154.58 billion yuan for the first half of the year, a 6.8 to 13.1 percent year-on-year increase.
It has also projected a first-half net profit of between 5.35 billion yuan and 5.56 billion yuan, an increase of 0.6 to 4.5 percent from a year earlier.
After the IPO, Hon Hai retains an 84.8 percent stake in FII, which has serves global heavyweights such as Amazon.com Inc, Apple Inc, Dell Inc, Aris International PLC, Huawei Technologies Co (華為) and Lenovo Group Ltd (聯想).
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
‘FAILED EXPORT CONTROLS’: Jensen Huang said that Washington should maximize the speed of AI diffusion, because not doing so would give competitors an advantage Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) yesterday criticized the US government’s restrictions on exports of artificial intelligence (AI) chips to China, saying that the policy was a failure and would only spur China to accelerate AI development. The export controls gave China the spirit, motivation and government support to accelerate AI development, Huang told reporters at the Computex trade show in Taipei. The competition in China is already intense, given its strong software capabilities, extensive technology ecosystems and work efficiency, he said. “All in all, the export controls were a failure. The facts would suggest it,” he said. “The US
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
French President Emmanuel Macron has expressed gratitude to Hon Hai Precision Industry Co (鴻海精密) for its plan to invest approximately 250 million euros (US$278 million) in a joint venture in France focused on the semiconductor and space industries. On his official X account on Tuesday, Macron thanked Hon Hai, also known globally as Foxconn Technology Group (富士康科技集團), for its investment projects announced at Choose France, a flagship economic summit held on Monday to attract foreign investment. In the post, Macron included a GIF displaying the national flag of the Republic of China (Taiwan), as he did for other foreign investors, including China-based
RSS