Stories
Amazon Invests in Taiwan's Gold Circuit Electronics Amid AI Boom
- •Amazon will become an equity shareholder in Taiwan-based PCB manufacturer Gold Circuit Electronics Inc. through a private placement.
- •The investment, totaling approximately NT$1.589 billion (USD 54.45 million), will see Amazon subscribe to about 1.86 million shares at NT$856 per share.
- •This move transitions Amazon from a corporate client to a formal equity shareholder, highlighting the increasing demand for specialized circuit boards in AI servers.
- •Gold Circuit Electronics confirmed this is its first private placement this year involving an outside strategic investor.
- •The Taiwanese firm also approved a NT$7.9 billion (USD 270.73 million) capital expenditure plan for land acquisition and a new manufacturing plant to expand production capacity, funded by convertible bonds starting Q4.
Key Questions Answered
Amazon is investing approximately NT$1.589 billion, equivalent to USD 54.45 million, to subscribe to about 1.86 million shares at NT$856 per share through a private placement.
The investment transitions Amazon from a corporate client into a formal equity shareholder. This move underscores the critical role of Taiwanese suppliers in the global AI supply chain as Amazon expands cooperation to develop specialized circuit boards for AI servers.
Gold Circuit's board approved an investment outlay of NT$7.9 billion, or USD 270.73 million, dedicated to land acquisitions and constructing a new manufacturing plant to expand production capacity for future demand. This capital expenditure program starts in the fourth quarter and will be funded through convertible bonds.
