Hon Hai Precision Industry Co., Ltd. significantly increased capital for its subsidiary to comprehensively enhance AI and iPhone production capacity!
Hon Hai Precision Industry Co., Ltd. (2317-TW) announced a capital increase of approximately 26.4 billion New Taiwan Dollars to strengthen capacity in AI servers and areas such as iPhones. The capital increase will be made to subsidiaries in the United States, Germany, Mexico, and India, including investments in the subsidiary of Cloud Network Technology and other related enterprises. Meanwhile, affected by recent bearish market factors, Hon Hai's stock price experienced a sharp decline, but has rebounded recently. Currently, the stock price is around 180 NTD, up nearly 12% from before
Investment Insights - Hon Hai to invest over 20 billion NT dollars to increase capital in subsidiaries, aiming to strengthen AI server, iPhone production capacity, will this help boost its stock price recovery?
On Wednesday evening (August 21), Hon Hai Precision Industry Co., Ltd. (2317-TW) announced that it will increase capital in its subsidiaries in the United States, Germany, Mexico, India, etc., totaling approximately 26.4 billion NT dollars, with the aim of increasing its layout in AI servers, cloud products, iPhone production capacity, and more.
According to the announcement, Cloud Network Technology Singapore Pte. Ltd. will increase capital in FII AMC MEXICO S. DE R.L. DE C.V. by 7.7 billion NT dollars; Cloud Network Technology USA Inc. will increase capital in Foxconn Assembly LLC. by 7.7 billion NT dollars.
Foxconn Singapore Pte Ltd will increase capital in Foxconn Hon Hai Technology India Mega Development Private Limited by 4.6 billion NT dollars; Foxconn Interconnect Technology GmbH will increase capital in FIT Voltaira Auto Kabel Gruppe GmbH by 6.4 billion NT dollars.
Previously, due to multiple negative factors, Hon Hai's stock price experienced a sharp decline, but has recently rebounded and recovered. On August 8, the stock plummeted by 5.5%, dropping to 161 NT dollars at one point. Currently, it has rebounded to around 180 NT dollars, an increase of nearly 12%.
