Compal Electronics Inc (仁寶), Wistron Corp (緯創) affiliate Wiwynn Corp (緯穎) and US company Jabil Inc are set to submit revised offers for Advanced Micro Devices Inc’s (AMD) artificial intelligence (AI) server assembly plants, people familiar with the matter said.
Inventec Corp (英業達) and Pegatron Corp (和碩), which Bloomberg News previously reported were also interested in the assets, have since dropped out of the bidding, said the people, who asked not to be identified because the information is private.
AMD, which is working with an adviser, has called for refreshed bids to be submitted in the coming days, the people said.
Photo: Fang Wei-chieh, Taipei Times
The US firm is aiming to wrap up the sale by the end of the second quarter, in a deal that could be valued at US$3 billion to US$4 billion, Bloomberg News has reported.
The sale of the US manufacturing assets, which are based in Texas and New Jersey, come at a time when many Taiwanese electronics companies are rushing to build in the US to avoid current or future tariffs imposed by US President Donald Trump.
Bidders view the plants as valuable, because they come with 1,500, skilled employees, one of the people said.
AMD inherited the plants through its US$4.9 billion acquisition of ZT Systems, a deal that closed at the end of March. AMD last year said it would offload the manufacturing business to avoid competing with its customers, such as Dell Technologies Inc and Hewlett Packard Enterprise Co.
The deliberations are ongoing and there is no certainty that AMD would reach a deal.
Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada estimated previously that the manufacturing division could sell for US$1.5 billion to US$3 billion.
The server manufacturing operations had revenue of about US$10 billion during the 12 months prior to AMD’s purchase.
For potential buyers, it is a chance to grab facilities used to make servers that are at the heart of the artificial intelligence boom.
Taiwanese firms, including Hon Hai Precision Industry Co (鴻海精密), rely on Mexico as a key AI server assembly and parts production hub. Since Trump’s win in November, Hon Hai has secured land in the US and last month said it would announce more investments in the US.
The board of its Taiwanese peer, Quanta Computer Inc (廣達), approved a US$230 million capital increase for its US unit.
STRONG INTEREST: Analysts have pointed to optimism in TSMC’s growth prospects in the artificial intelligence era as the cause of the rising number of shareholders The number of people holding shares of chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a new high last week despite a decline in its stock price, the Taiwan Depository and Clearing Corp (TDCC, 台灣集保) said. The number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier, TDCC data showed. The stock price fell 1.34 percent during the same week to close at NT$1,840 (US$57.55). The decline in TSMC’s share price resulted from volatility in global tech stocks, driven by rising international crude oil prices as the war against Iran continues. Dealers said
Taiwan’s natural gas supply remains stable through the end of May, despite rising concerns about potential disruptions to Qatari liquefied natural gas (LNG) supplies due to escalating conflicts in the Middle East, the Ministry of Economic Affairs said yesterday. The ministry in a statement said that Taiwan has completed preparations for natural gas supply and shipping schedules through the end of May. It has also made plans to increase natural gas imports from regions outside the Middle East in June to ensure a stable supply, it added. Taiwan sources natural gas from 14 countries and is not solely dependent on the Middle East,
China is clamping down on fertilizer exports to protect its domestic market, industry sources said, putting an additional strain on global markets that were already grappling with shortages caused by the US-Israeli war on Iran. China is among the largest fertilizer exporters — shipping more than US$13 billion of it last year — and it has a history of controlling exports to keep prices low for farmers. Shipments through the war-blocked Strait of Hormuz account for about one-third of the sea-borne supply. This month, Beijing banned exports of nitrogen-potassium fertilizer blends and certain phosphate varieties, sources said. The ban, which has not
Grab Holdings Ltd agreed to buy Delivery Hero SE’s Foodpanda operations in Taiwan for US$600 million, a deal that marks its first foray outside of its Southeast Asian base. The cash acquisition will allow Grab to expand into 21 cities across Taiwan, the Singapore-based ride-hailing and delivery company said in a statement yesterday. Grab expects the transaction to be completed in the second half, subject to regulatory approvals. The purchase will give Grab a presence on the island of about 23 million people, helping it to expand beyond its intensely competitive home market. Grab has seen growth slow dramatically as it takes
RSS