Rumor: Foxconn reportedly to invest in Quanta Storage
Foxconn (the registered trade name of Hon Hai Precision Industry) reportedly will invest in Quanta Storage, the largest maker of slim-type optical disc drives (ODDs) in Taiwan, through subscription to the ECB (euro convertible bond) to be floated by the latter, according to industry sources. However, both Foxconn and Quanta Storage denied the report on October 4.
Quanta Storage’s board of directors decided to issue a five-year unsecured ECB worth up to US$60 million at a meeting on June 14 of this year, and the issuance was approved by government on July 13, the sources indicated. Foxconn has actively engaged in OEM production of half-height (H/H) ODDs since it invested in Taiwan-based ODD maker Pan International Industrial in 1999, acquired France-based Thomson’s production base of optical pick-up heads in China in April 2004 and then took over the ODD business unit of Taiwan-based Behavior Tech Computer in early 2005, the sources noted.
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