Monthly Archives: April 2016

Taiwan Forced To Rethink Its Air Defense Strategy

Defense News
Date: April 13, 2016
By: Michael J. Lostumbo, Special to Defense News

Air defense planners in Taiwan face a daunting challenge. They need to have

Two US-made F-16 fighters take off from the Chiayi air base in southern Taiwan during a demonstration on January 26. Taiwan is refurbishing its F-16 fleet, but even with the upgrades its force will lag behind China's. (Photo: Sam Yeh/AFP/Getty Images)

Two US-made F-16 fighters take off from the Chiayi air base in southern Taiwan during a demonstration on January 26. Taiwan is refurbishing its F-16 fleet, but even with the upgrades its force will lag behind China’s. (Photo: Sam Yeh/AFP/Getty Images)

enough capacity to deter China, which not only has a large military but, more importantly, for the past 25 years has spent heavily on modernizing that force. In modern warfare, air dominance is important in its own right, but it also enables other types of military operations by land and sea forces.

Thus an important capability for Taiwan is to be able to contest China’s People’s Liberation Army (PLA) air dominance. In the past, Taiwan’s fighter aircraft have been the mainstay of their air defenses, and in the future these aircraft will command most of the air defense budget. But China has found ways to put those aircraft in check, making them an expensive luxury in Taiwan’s defense budget.

Taiwan should begin to think beyond an air defense that relies so heavily on its fighter aircraft. Surface-to-air missiles (SAMs) would offer greater defensive capabilities and are a better investment moving forward.     [FULL  STORY]

U.S. Congress marks TRA’s 37th anniversary

Focus Taiwan
Date: 2016/04/13
By: Rita Cheng and Evelyn Kao

Washington, April 12 (CNA) Members of the U.S. Senate Taiwan Caucus and

(CNA file photo)

(CNA file photo)

Congressional Taiwan Caucus have recently released statements in recognition of the 37th anniversary of the enactment of the 1979 Taiwan Relations Act (TRA) and the continuing and growing partnership between Taiwan and the United States.

“Taiwan is one of the strongest democratic and economic partners of the United States in the Asia-Pacific region,” said U.S. Senator James Inhofe, a co-chair of the Senate Taiwan Caucus, in a statement issued Monday.

“The Taiwan Relations Act has played an indispensable role in shaping American policy toward Taiwan and U.S. strategy in Asia and serves as a model of freedom… Taiwan’s strength, both democratically and economically, helps to bolster peace and stability in this strategically important region,” Inhofe said.     [FULL  STORY]

Abduction Flap Signals China’s Increasing Pressure on Taiwan

Voice of America
Date: April 13, 2016
By: Ralph Jennings

TAIPEI—
A top Taiwanese official on Wednesday said Taipei may send a delegation to

FILE - A Chinese national flag flutters in front of the Shanghai's No. 1 People's Intermediate Court in Shanghai, China.

FILE – A Chinese national flag flutters in front of the Shanghai’s No. 1 People’s Intermediate Court in Shanghai, China.

Beijing to learn more about a fraud trial involving some 45 Taiwanese nationals who were deported from Kenya and sent to mainland China against their wishes.

Taipei has accused China of abducting the group, which faced accusations in Kenya of committing telecommunications fraud. Analysts say Beijing may be trying to force the soon-to-be ruling party in Taiwan to start a friendly dialogue with mainland China, rather than veering toward stronger self-rule, which goes against Beijing’s wishes.

“For this kind of case, I must say that we will try to get our citizens back [to Taipei] for trial,” Andrew Hsia, who heads the island’s Mainland Affairs Council (MAC), told VOA’s Mandarin Service. “But China will contend, too, since the victims are already over there. So both sides will coordinate on the basis of judiciary assistance.”

Hsia also said there used to be cross-strait cooperation and a tacit understanding between the two sides in dealing with similar cases. If mainland China thinks a sentence for fraud in Taiwan is not heavy enough, he said, there would be room for discussion.     [FULL  STORY]

Contract chip maker UMC falls to No. 3 spot; TSMC retains No. 1 title

Taiwan News
Date: 2016-04-13
By: Central News Agency

Taiwan-based United Microelectronics Corp.’s (UMC) ranking as a major supplier in the global wafer foundry market fell one notch to third in 2015 from a year earlier after it suffered a fall in revenue that year, according to information technology market advisory firm Gartner Inc.

However, Taiwan Semiconductor Manufacturing Co. (TSMC), another Taiwanese chip maker, retained its position as largest worldwide supplier as the firm outperformed the global wafer foundry industry in 2015, Gartner said.

In a research report posted on its website on Tuesday, Gartner said that UMC was replaced by U.S.-based GlobalFoundries Inc. to fall to the No. 3 spot with the Taiwanese firm having posted US$4.56 billion in sales, down 1.3 percent from a year earlier.

The fall in revenue left UMC with a 9.3 percent share of the world’s contract chip market, while GlobalFoundries grabbed a 9.6 percent global market share, Gartner said. GlobalFoundries posted US$4.67 billion in sales in 2015, up 6.2 percent from a year earlier, according to the advisory firm.     [FULL  STORY]

Taiwan’s tax revenue declines in Q1

Focus Taiwan
Date: 2016/04/13
By: Chiu Po-sheng and Romulo Huang

Taipei, April 13 (CNA) Taiwan’s net tax revenue totaled NT$345.5 billion 201604130031t0001(US$10.67 billion) in the first quarter of this year, representing a decline of 2.2 percent or NT$7.9 billion from the same period last year, the Ministry of Finance said Wednesday.

The cumulative total net tax revenue for the first three months of 2016 accounted for only 95.4 percent of the distributed budget, falling short by NT$16.6 billion, the ministry said.

In the breakdown, income tax revenue from business enterprises suffered the biggest year-on-year decline of 68.6 percent, falling by NT$7.2 billion, in the first quarter of this year.

Land value increment tax revenue dropped 35.9 percent or NT$9.4 billion, while the individual income tax revenue decreased by 1.7 percent or NT$1.3 billion.     [FULL  STORY]

Epistar expects flat revenue: chairman

POSITIVE OUTLOOK:The company’s chairman said that he is optimistic about growth momentum of its new automotive LED applications for the European market this year

Taipei Times
Date: Apr 14, 2016
By: Lauly Li / Staff reporter

Epistar Corp (晶電), the nation’s largest LED chipmaker, expects revenue to be flat this year, but aims to improve its profitability through continued restructuring measures, chairman Lee Biing-jye (李秉傑) said yesterday.

“We would maintain our decision to freeze 25 percent of our total production capacity throughout this year and adjust Epistar’s product portfolio to improve our profitability,” Lee told reporters on the sidelines of the Taiwan International Lighting Show at Nangang Exhibition Hall in Taipei.

Due to the falling average selling price (ASP) of LED lighting products and sluggish demand for backlight units used in TVs, Epistar reported a net loss of NT$3.01 billion (US$93.04 million) last year, plummeting significantly from NT$1.81 billion made a year earlier.

That represented losses per share of NT$2.81 for last year, compared with the previous year’s earnings per share of NT$1.98.

As part of its restructuring plan, Epistar last month announced a plan to reduce its production capacity by suspending the operations of two of its plants in Taiwan and China.     [FULL  STORY]

Chinese tourist applications down 15-30%: Tourism Bureau

Taiwan News
Date: 2016-04-13
By: Central News Agency

Chinese tourist applications saw a 15 percent-30 percent 6747608decrease in the two-week period from March 23 to April 5, a Tourism Bureau official said Tuesday.

During the two-week period, applications for tourists traveling in groups decreased by some 30 percent, while independent traveler applications decreased about 15 percent, said Lin Kun-yuan, a division chief of the bureau.

The daily quota set for Chinese tourists traveling in groups to Taiwan is 5,000, and the same number applies to independent travelers.

The figures mean that roughly 7,750 applications for the 10,000 daily quota were made during the two-week period, a 22.5 percent decrease.     [FULL  STORY]

President-elect elaborates on her new southbound policy

Focus Taiwan
Date: 2016/04/13
By: Sophia Yeh and Evelyn Kao

Taipei, April 13 (CNA) President-elect Tsai Ing-wen (蔡英文) said 201604130029t0001Wednesday on her Facebook page that establishing a comprehensive supply chain for Taiwanese businesses operating in Southeast Asia and India forms the cornerstone of her new southbound policy.

She said the policy is aimed at strengthening Taiwan’s economic and cultural ties with countries in the region and creating a link between overseas Taiwanese students and Taiwan’s new immigrants from the region.

Tsai, who will take office on May 20, said that Taiwan cannot afford to miss out on the opportunities presented in the vibrant Association of Southeast Asian Nations (ASEAN) region and South Asia, which are now the focus of world attention.

Tsai said her administration will raise the levels of governance responsible for decision making with regard to the policy. In addition to encouraging bilateral investment, the policy is also aimed at establishing cooperation ties with ASEAN and South Asian countries in the areas of talent cultivation, education, culture, tourism and agriculture to find a way out for Taiwan’s diplomacy and usher in a new era of economic development.     [FULL  STORY]

Cabinet calls for procedural justice in Kenya case

Taipei Times
Date: Apr 14, 2016
By: Alison Hsiao / Staff reporter

Premier Simon Chang (張善政) yesterday said that the Executive Yuan called for two principles — procedural and judicial justice — to be upheld in the case of Taiwanese deported from Kenya to China.

“The procedure through which Taiwanese are deported to [China] should comply with the principle of procedural justice. We believe that there has been fault on [China’s] part, as it failed to respect the injunction issued by the Kenyan High Court and forced its way to send [Taiwanese to China] and failed to notify us of the matter in advance, which was against the spirit of the Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement (海峽兩岸共同打擊犯罪及司法互助協議,)” Chang said.

“I consider it highly appropriate for the Ministry of Foreign Affairs and the Mainland Affairs Council [MAC] to have lodged a stern protest [to China],” he added.

Regarding potential judicial proceedings, the premier said that Taiwanese who have done “bad things” should be punished accordingly.     [FULL  STORY]

Taipei Dome contract could be terminated: Ko

Taiwan News
Date: 2016-04-13
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Taipei City is considering ending its contract with 6747717the Farglory Group about the Taipei Dome, Mayor Ko Wen-je told city councilors Wednesday.

The nearly completed 40,000-seat stadium project has been the focus of a high-profile dispute between the mayor and Farglory Chairman Chao Teng-hsiung ever since the former took office in December 2014. Last year, the city decided work on the Taipei Dome had to be halted due to safety considerations.

During a question-and-answer session at the Taipei City Council, Ko was asked how he was planning to deal with the project. The stalemate has been partly blamed for falling opinion poll ratings for the outspoken independent mayor.

For the first time, Ko said that the city was “resolving the issue in the direction of a termination of the contract,” reports said. As to whether the stadium should be torn down and rebuilt, or just torn down to make way for something else, Ko said every possibility was there, if the law was respected.     [FULL  STORY]