Hon Hai Precision Industry Co (鴻海精密) has raised US$1.1 billion via a three-year loan, according to people familiar with the matter, as the iPhone maker continues to ride on a boom in artificial intelligence (AI) server demand.
The facility is a so-called new money loan, which provides the firm with more funds on top of its existing debt, one of the people said, adding that it would be for general corporate purposes.
Seventeen banks, including Taiwanese and international lenders, provided the loan, said the people, who asked not to be identified because the matter is private.
Photo: AFP
Foxconn Singapore Pte Ltd, Falcon Precision Trading Pte Ltd and ECMMS Precision Singapore Pte Ltd are the borrowers, while Hon Hai is the guarantor, the people added.
Hon Hai did not respond to requests for comment.
Hon Hai, also known as Foxconn Technology Group (富士康科技集團), is forecasting a boom in AI server demand, which would continue into next year.
Cloud products would become a key pillar of growth for the company next year and match its mobile phone sales, chairman Young Liu (劉揚偉) had told analysts earlier.
The firm is also building the world’s largest assembly plant for servers housing Nvidia Corp’s chips in Mexico and plans to locate its new southern Taiwan headquarters into a 45-story building in Kaohsiung.
Hon Hai last week reported a stronger-than-expected profit of NT$49.33 billion (US$1.52 billion) in the July-to-September quarter, up 14 percent annually and an increase of 41 percent quarterly.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
RSS