Taiwan Tech Giants Tap Convertible Bonds to Fuel AI Expansion

Driven by the demand for AI investments, Taiwanese tech companies, including Apple supplier Quanta Computer, are increasingly raising capital through dollar-denominated convertible bonds. This trend is fueled by the appeal of these hybrid securities, which offer lower interest rates compared to traditional debt. The raised capital is being used for purposes like purchasing raw materials and funding expansion plans related to AI. This surge in dollar funding also serves as a hedge against the weakening Taiwan dollar. A similar trend is observed in China, where tech giants like Alibaba and JD.com have utilized convertible bonds to fund US share buybacks.