Amazon taking part in Taiwan PCB maker's private placement

Taipei, Sept. 29 (CNA) Amazon.com Inc., one of the four major U.S. cloud service providers, is participating as a strategic investor in a private placement by Taiwan-based printed circuit board (PCB) maker Gold Circuit Electronics Inc., the Taiwanese manufacturer said on Tuesday.

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 (US$27.14) per share.

The share purchase is expected to cost Amazon about NT$1.589 billion, making it a shareholder of Gold Circuit after being a client of the company amid the global artificial intelligence (AI) boom, which has driven strong demand for PCBs used in AI servers.

The subscription price is about 80 percent of the reference price set by Gold Circuit and approved by its board, the company said.

The private placement is Gold Circuit's first this year involving a strategic investor, the company said.

Industry sources said Amazon Web Services (AWS), the cloud services arm of Amazon, has established close ties with Taiwanese suppliers, including Gold Circuit.

Before taking part in Gold Circuit's private placement, Amazon participated in another private placement by Taiwan-based application-specific integrated circuit (ASIC) designer Alchip Technologies Ltd. in April, the sources said.

They 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.

In another announcement, Gold Circuit said its board also approved a plan to invest NT$7.9 billion, including in land purchases and construction of a new plant, to expand production capacity to meet future demand.

The planned investment is scheduled to begin in the fourth quarter of this year and will be financed through the issuance of convertible bonds, Gold Circuit said.