(Bloomberg) -- Taiwan’s Hon Hai Precision Industry Co. has raised $1.1 billion via a three-year loan, according to people familiar with the matter, as the iPhone maker continues to ride on a boom in AI server demand.

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The facility is a so-called new money loan, which provides the firm with more funds on top of its existing debt, one of the people said, adding that it will be for general corporate purposes.

Seventeen banks, including Taiwanese and international lenders, provided the loan, said the people, who asked not to be identified because the matter is private. Foxconn Singapore Pte., Falcon Precision Trading Pte. and ECMMS Precision Singapore Pte. are the borrowers, while Hon Hai is the guarantor, the people added.

Hon Hai didn’t reply to requests seeking comment.

Hon Hai, also known as Foxconn, is forecasting a boom in AI server demand, which would continue into next year. Cloud products would become a pillar of growth for the company in 2025 and match its mobile phone sales, chairman Young Liu had told analysts earlier.

It is also building the world’s largest assembly plant for servers housing Nvidia Corp.’s chips in Mexico and planning to locate its new southern Taiwan headquarters in a 45-story commercial building.

Hon Hai reported a stronger-than-expected profit of NT$49.3 billion ($1.5 billion) in the September quarter.

--With assistance from Jane Lanhee Lee.

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