Business and Finance

New shopping outlet park to open in Taiwan’s Tainan 2022

Mitsui Outlet Park Tainan is the third mall in Taiwan operated by Japanese real estate group

Taiwan News
Date: 2020/01/20
By: Huang Tzu-ti, Taiwan News, Staff Writer

(Facebook/Mitsui Outlet Park Taichung Port photo)

TAIPEI (Taiwan News) — Japanese real estate developer Mitsui Fudosan broke ground at the Mitsui Outlet Park Tainan on Monday (Jan. 20), the largest retail park of its kind in the southern Taiwan metropolis.

The new shopping mall will be the third outlet in Taiwan operated by Mitsui group, in addition to those in New Taipei’s Linkou and Taichung Port, reported CNA. Located adjacent to Tainan Station of the Taiwan High Speed Rail (HSR), the four-story mall will be 5.86 hectares and have 160 stores upon completion of the first phase in 2022.

The number of brands will grow to 220 by 2025, wrote Liberty Times. The venture is expected to generate job opportunities while driving local industrial development, said Tainan Mayor Huang Wei-cher (黃偉哲).

It will also contribute to the “Grand South Plan” (大南方計畫), part of President Tsai Ing-wen's (蔡英文) electoral platform. This aims to boost growth in southern Taiwan through the implementation of tech, transport, and commercial projects, as outlined by Vice President-elect William Lai (賴清德).    [FULL  STORY]

Construction of 3rd Mitsui Outlet Park begins in Tainan

Focus Taiwan
Date: 01/20/2020
By: Yang Sz-juei, Liao Yu-yang and Frances Huang

Taipei, Jan. 20 (CNA) Another Mitsui Outlet Park broke ground in Tainan City on Monday, and will soon become the third outlet to be operated by Japanese real estate developer Mitsui Fudosan Co. in Taiwan.

The third Mitsui Outlet Park — coming after the first one located in Linkou of New Taipei and the second in Taichung — will be built adjacent to the Taiwan High Speed Rail's station in Tainan, southern Taiwan, and the investment is expected to bring the largest shopping center to the city.

According to Mitsui Fudosan, construction of the third Mitsui Outlet Park will be completed in two stages.

Under the first phase, 160 stores will be built on a total of 64,000 square meters of floor space. Phase 1 is scheduled to become operational in 2022.    [FULL  STORY]

First rise in export orders in 13 months

HEADWINDS: Orders are likely to decrease this month, as seasonal factors and a weak global economy might depress demand, the Ministry of Economic Affairs said

Taipei Times
Date: Jan 21, 2020
By: Lisa Wang  /  Staff reporter

Export orders last month posted the first annual growth in 13 months to US$43.8 billion, driven by increasing orders for smartphones, 5G chips and machine tools amid easing US-China trade tensions, the Ministry of Economic Affairs said yesterday.

Different from customs-cleared exports, export orders are a critical gauge of how actual exports are likely to perform in one to three months.

The outlook for this quarter is positive as easing US-China trade tension might stimulate trade and investment worldwide, the ministry said.

“Hopefully, export orders in the first quarter would exceed the amount achieved in the first quarter of last year,” Department of Statistics Director Huang Yu-ling (黃于玲) said by telephone. 

Fiat Chrysler in talks with Foxconn to develop electric cars

Date: Jan 20 2020

Carlos Tavares, a former Renault star credited with reviving the company’s French rival Peugeot, is sometimes dubbed the "restructurer-in-chief". Forging an alliance between PSA and Fiat Chrysler could be his biggest challenge yet. Ciara Lee reports

Fiat Chrysler is in talks with the Taiwanese company Foxconn to develop and manufacture battery-powered vehicles, the U.S.-Italian automaker said Friday.

Fiat Chrysler is in the process of merging with France's PSA Peugeot, which is 12 per cent owned by Chinese company Dongfeng Motor Co. Both Fiat Chrysler and Peugeot have lagged in developing electric powertrains and also have been struggling to increase sales in China, the world's biggest auto market.

It was unclear what impact Fiat Chrysler's proposed joint venture with Foxconn, formally known as Hon Hai Precision Ind. Co., Ltd., would have on the wider merger, which is expected to be completed in the next year or so.

If a deal with Foxconn is reached, a joint venture would focus first on China, the biggest market for electric cars with 1.2 million vehicles sold last year – half the global total.    [FULL  STORY]

U.S. brokerage raises target price on TSMC shares to over NT$400

Taiwan News
Date: 2020/01/19
By:  Central News Agency

TSMC CEO C.C. Wei (left) and Chairman Mark Liu (CNA photo)

An American brokerage has increased its target price on shares of Taiwan Semiconductor Manufacturing Co. (TSMC) to NT$402 (US$13.42) after the company's strong 2020 guidance at an investor conference Thursday.

In a research note Friday, the U.S. securities house said it was pleased by TSMC's sales forecast for 2020 and was therefore raising its target price on the stock from NT$396 to NT$402.It was the first foreign brokerage to give a target price of more than NT$400 on shares of TSMC, the world's largest chipmaker.

Citing optimism toward the growth of TSMC, the American brokerage kept its "buy" rating on TSMC shares.Meanwhile, a Japanese securities house also maintained its "buy" recommendation on the stock and its target price of NT$395.

TSMC's fundamentals are expected to remain sound, with its compound annual sales growth over the next five years estimated at almost 10 percent, but its shipments might be affected by continued U.S. sanctions against Chinese telecom equipment giant Huawei Technologies Inc., one of TSMC's biggest clients, the Japanese brokerage said.    [FULL  STORY]

Chinese yuan deposits in Taiwan saw steepest fall in 2019

Focus Taiwan
Date: 01/18/2020
By: Pan Tzu-yu and Frances Huang

Taipei, Jan. 18 (CNA) Yuan deposits held by Taiwanese banks dropped sharply last year to 261.03 billion yuan (US$38.05 billion), as investor confidence in the currency fell due to the trade frictions between the United States and China, according to Taiwan's central bank.

The decline of 37.41 billion yuan from the previous year was the biggest annual drop since the business started in Taiwan in 2013 and the third consecutive year of decline, the central bank said.

Yuan deposits in Taiwan banks were 261.03 billion yuan in 2019, compared with 298.44 billion yuan at the end of the previous year, the data showed.

The central bank said the sharp year-on-year decline reflected caution among investors about the value of the Chinese currency amid the Washington-Beijing trade disputes, an economic slowdown in China, and a slower pace of the efforts by Chinese authorities to internationalize the yuan.    [FULL  STORY]

Taiwan could skirt trade deal squeeze

CONCERNS REMAIN: While the ‘phase one’ deal might not hurt the nation, proposed harsher restrictions on Huawei could affect Taiwan’s role in technology supply chains

Taipei Times
Date: Jan 20, 2020
By: Chen Cheng-hui  /  Staff reporter

A predicted sharp rise in Chinese imports of US goods as part of a “phase one” trade deal signed by the nations last week would squeeze other trade partners, but should have a limited impact on Taiwan, DBS Bank Ltd (星展銀行) said on Friday.

Taiwan has been a major beneficiary of the US-China trade dispute and reaped the rewards of order transfers since the tit-for-tat tariffs began in July 2018. However, China’s pledge to purchase US$200 billion of US goods and services over the next two years has raised concerns that demand for Taiwanese goods could fall.

Singapore-based DBS economist Ma Tieying (馬鐵英) said it is unlikely that Taiwanese exports to China would be replaced by US goods, if China is to honor its purchase commitments.

“The overlap of the US’ and Taiwan’s export structure is low,” Ma said in a report, adding that China’s imports from Taiwan are largely concentrated in electrical machinery and equipment, while its US imports are equally comprised of agricultural goods, transport equipment and electrical machinery.

Pentagon ups pressure on Taiwan’s TSMC to produce chips in the U.S.

U.S. fears interference from company's Chinese customers: Nikkei Asian Review

Taiwan News
Date: 2020/01/15
By: Matthew Strong, Taiwan News, Staff Writer

TSMC produces chips for the F-35 jet.  (AP photo)

TAIPEI (Taiwan News) – Fearing interference from China, the Pentagon wants Taiwan Semiconductor Manufacturing Co. (TSMC) to produce military-grade chips in the United States, the Nikkei Asian Review reported Wednesday (Jan. 15).

The world’s top contract chip maker makes components for both the U.S. Air Force’s F-35 fighter jet and for China’s electronics giant Huawei Technologies, which has been embroiled in allegations about its close connections to the communist country’s military establishment.

TSMC was reportedly being pressured to either reach a decision before November’s U.S. presidential election to manufacture in that country or to come up with another acceptable solution, the Japanese publication reported.

An unnamed senior Taiwanese government official said the U.S. was not planning to compromise on the demand to produce chips destined for military projects on U.S. soil, according to the Nikkei Asian Review.    [FULL  STORY]

U.S.-China trade deal to have limited effect on domestic economy: MOEA

Focus Taiwan
Date: 01/16/2020
By: Liao Yu-yang and Matthew Mazzetta

Photo by China News Service

Taipei, Jan. 16 (CNA) The first phase of a trade agreement signed by the United States and China Wednesday will have only a limited impact on Taiwan's economy, according to an initial assessment by the Ministry of Economic Affairs (MOEA).

The bilateral deal, which is being billed as "phase one" of a comprehensive trade agreement, was signed by U.S. President Donald Trump and Chinese Vice Premier Liu He (劉鶴) in Washington, dialing down roughly a year and a half of trade hostilities between the world's two largest economies.

On Thursday, however, the MOEA downplayed the deal's potential impact on the domestic economy, noting its limited scale, as well as the significant barriers that remain before a second, more comprehensive phase of the agreement can be reached.

In an interview with CNA, Vice Economics Minister Wang Mei-hua (王美花) said that in phase one of the deal, a number of U.S. tariffs will remain in place, thus reducing the immediate impact on Taiwanese manufacturers.    [FULL  STORY]

TSMC posts record profit on 5G demand

MAKING MONEY WORK: The chipmaker said it plans to spend up to US$16 billion on advancing its processes to meet growing customer demand for 5G technology

Taipei Times
Date: Jan 17, 2020
By: Lisa Wang  /  Staff reporter

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies chips for Apple Inc’s iPhones, yesterday posted a record-high net profit for last quarter, driven by strong demand for chips made using advanced technologies for 5G-related and high-performance computing applications.

During the final quarter of last year, TSMC’s net profit jumped 16.1 percent to NT$116.04 billion (US$3.87 billion), compared with NT$99.98 billion in the same period the previous year. That represented a quarterly increase of 14.8 percent from NT$101.07 billion.

As growth momentum is expected to extend into the next few years, the chipmaker this year plans to budget for capital expenditure of between US$15 billion and US$16 billion, mainly on 7-nanometer (nm), 5nm and 3nm technologies.

That surpasses TSMC’s capital spending of US$14.9 billion last year.    [FULL  STORY]