Apple’s main iPhone assembler has indirect exposure to Silicon Valley Bank’s meltdown of about $100 million, joining the ranks of finance and tech firms shaken by the bank’s collapse.
Taiwan’s Hon Hai Precision Industry Co. parked capital with investment funds that in turn funneled money into startups that banked with the California lender, Chairman Young Liu said. It’s now going through its books carefully but anticipates minimal impact since the Fed has guaranteed SVB’s deposits, he told reporters after reporting results Wednesday.
Hon Hai, also known as Foxconn, is the world’s largest manufacturer of iPhones and other electronics for brands from HP to Sony, maintaining the majority of its operations in China.
“The good news is that the US government has guaranteed full return of all deposits and I believe the damage will be minimized,” he said. “We don’t see systemic risks to our investments.”
MacDailyNews Take: As far as Foxconn goes, SVB’s collapse is a non-issue.
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