Hon Hai and Dongyuan Electric Motor announced a stock swap strategic alliance, focusing on AI server business
Hon Hai Precision Industry Co., Ltd. and Dongyuan Electric Machinery will establish a strategic alliance through a share swap. According to the share swap plan, Hon Hai will hold 10% of Dongyuan Electric Machinery's shares, while Dongyuan Electric Machinery will hold approximately 0.519% of Hon Hai's shares. This share exchange will be conducted through the issuance of new shares. The alliance established by both parties will focus on the AI server business
On Wednesday the 30th, Hon Hai and Delta Electronics executives stated at a press conference that Hon Hai and Delta Electronics will establish a strategic alliance through a share swap. This move marks a substantial step forward in the deep cooperation between the two companies in key business areas.
According to the share swap plan announced by both parties, Hon Hai will hold 10% of Delta Electronics' shares, while Delta Electronics will hold approximately 0.519% of Hon Hai's shares. The share exchange will be conducted through the issuance of new shares.
Previously, the market had speculated highly on the dual suspension of trading by Hon Hai and Delta, with widespread belief that the two parties would have significant cooperation. Now the mystery has been unveiled, and both companies pointed out that the alliance they established will focus on the AI server business.
Hon Hai Chairman Liu Yangwei had previously stated that Hon Hai possesses strong R&D and manufacturing capabilities in the AI server field, while Delta Electronics has leading technology in motors, drive systems, and industrial automation. This powerful collaboration is expected to create a stronger competitive edge in the AI server market.
Hon Hai's subsidiary, Hon Hai Advanced, saw its stock price perform impressively this morning, surging by over 9% at one point, currently reported at 44.2 yuan.
