$100 million ‘indirect exposure’ from SVB meltdown looms over Apple's iPhone maker

With about $100 million in indirect exposure to Silicon Valley Bank's meltdown, Apple Inc.'s main iPhone supplier joins the ranks of the other finance and tech firms that have been affected by the startup linchpin's collapse.

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Hon Hai Precision Industry Co. parked capital with investment funds that funneled money into startups banking with the California lender, chairman Young Liu said. Despite the Fed guaranteeing SVB's deposits, the company expects minimal impact on its books, he said after reporting Wednesday's results.

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The Asian firm's comment illustrated the way in which a bank that previously was little known outside of Silicon Valley is now exerting a far-reaching impact across the globe as a result of its spectacular implosion. Known as Foxconn, Hon Hai is the world's largest iPhone manufacturer and a manufacturer of a wide range of electronics for brands ranging from HP to Sony, with the majority of its operations based in China.

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“It is good to know that the government of the United States has promised a full refund of all deposits, and I am confident that the damage to the firm will be minimized," he said. “It is our belief that our investments do not pose systemic risks to the company."

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The collapse of SVB over a period of several frenzied days ignited confusion and panic among startups and financiers across the globe, and economists are still grappling with the implications and potential systemic risks that were exposed by this episode.