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.
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