Quanta Computer Inc., a major supplier to Apple Inc. and a contract manufacturer for MacBooks, is looking to raise up to $1 billion by issuing convertible notes. The company stated the proceeds from this offering will be used to purchase raw materials. This move comes as Taiwanese tech companies are significantly benefiting from the artificial intelligence surge.
Taiwanese companies have already raised $1.3 billion through US dollar-denominated convertible bonds this year, surpassing the annual totals of the previous two years. Additionally, they have issued $2.9 billion in additional shares in US currency, marking the highest figure since 2007. Firms like Wiwynn Corp., GlobalWafers Co., and Alchip Technologies Ltd. are among those that have also raised funds this year, driven by the AI theme.
Analysts like Rob Chan from Citigroup Inc. note that recent buyers include sovereign wealth funds and long-only funds seeking AI exposure, indicating a fundamental shift in capital markets. Brian Chau of UBS Group AG anticipates continued additional share sales by Taiwanese companies in the next 12 to 18 months, despite a recent pullback in AI-related stocks. The surge in US dollar funding also helps companies hedge against the weakening New Taiwan dollar, which has dropped about 5% against the greenback this year.
