Taipei [Taiwan], September 30 (ANI): E-commerce and cloud computing giant Amazon has moved to secure a direct equity interest in Taiwan-based printed circuit board (PCB) manufacturer Gold Circuit Electronics Inc. by participating as a strategic investor in the company's private placement, according to a news report by Focus Taiwan.
The investment will transition the major United States cloud service provider from a corporate client into a formal equity shareholder of the Taiwanese firm. This development comes amid a worldwide artificial intelligence boom that continues to accelerate product demand for specialised circuit boards required in AI servers.
In an announcement posted on the Taiwan Stock Exchange, where Gold Circuit shares are traded, the company said its board approved a plan that day allowing Amazon to subscribe to about 1.86 million Gold Circuit shares at NT$856 (USD 27.14) per share.
Under the approved structure, the total share acquisition will cost Amazon around NT$1.589 billion (USD 54.45 million).
The company stated that the subscription price stands at about 80 per cent of the reference price established by Gold Circuit and sanctioned by its board.
The manufacturer also confirmed that the transaction marks Gold Circuit's first private placement this year involving an outside strategic investor.
As per the news report, industry sources indicated that Amazon Web Services, the primary cloud services division of the company, maintains operational connections with Taiwan-based hardware suppliers, including Gold Circuit.
Prior to entering into the equity agreement with Gold Circuit, Amazon participated in an earlier private placement in April involving Alchip Technologies Ltd., a Taiwan-based application-specific integrated circuit designer, the sources said.
“Amazon's investment in Gold Circuit underscores the role of Taiwanese suppliers in the global AI supply chain, as Amazon appears to be expanding cooperation with Taiwanese companies in developing PCBs for AI server use,” the news report said.
Separately, the Taiwanese component producer announced parallel capital expenditure plans to scale up its manufacturing infrastructure and support anticipated operational volumes.
Gold Circuit said its board approved an investment outlay of NT$7.9 billion (USD 270.73 million), earmarked for land acquisitions and the construction of a new manufacturing plant to expand production capacity for future demand.
The firm added that the capital expenditure program will commence in the fourth quarter of this year and will be funded through the issuance of convertible bonds. (ANI)
Amazon to pick up stake in Taiwan PCB maker through private placement
