Business and Finance

ASE undeterred by trade dispute woes

RUSH ORDERS: Many customers have put in short-term orders due to low visibility, while the firm’s diverse fab locations would help in case it needs to move production

Taipei Times
Date: Jun 28, 2019
By: Lisa Wang  /  Staff reporter, in KAOHSIUNG

ASE Technology Holding Co (ASE, 日月光投資控股) yesterday said that the US-China trade dispute

From left, ASE Technology Holding Co chief operating officer Tien Wu, chief financial officer Joseph Tung and board director Bough Lin yesterday attend the firm’s annual shareholders’ meeting in Kaohsiung.
Photo: Hung You-fang, Taipei Times

is to overshadow the world economy and decelerate the development of new technologies, but would not affect its goal of growing revenue in the next few quarters.

The dispute has proven that ASE’s longstanding strategy to globalize is imperative, given that the results of trade talks are unpredictable, chief operating officer Tien Wu (吳田玉) told reporters in Kaohsiung.

Asked whether customers of the world’s largest chip packager and tester have asked ASE to reduce the proportion of its production in China, Wu said that most customers are still assessing the matter.

However, the dispute might cause some changes to ASE’s customer portfolio, as orders from different regions might vary, he said without elaborating.    [FULL  STORY]

Taiwan’s technology authority presents 28 startups at InnovFest Unbound in Singapore

InnovFest Unbound is the largest innovation and start-up exhibition in Southeast Asia

Taiwan News
Date: 2019/06/26
By: George Liao, Taiwan News, Staff Writer

(Unbound Global Facebook photo)

TAIPEI (Taiwan News) – Taiwan’s Ministry of Science and Technology (MOST) is presenting 28 tech startups at 2019 Innovfest Unbound, showcasing their innovative tech solutions under the name of Taiwan Tech Arena Pavilion (TTA Pavilion), MOST said on Wednesday (June 26).

InnovFest Unbound, which takes place from June 27-28 this year is the largest startup exhibition in Southeast Asia, according to MOST. This year, the event will “welcome over 15,000 entrepreneurs, brands, corporates, investors and tech start-ups from 100+ countries to meet and share new ideas, build partnerships and celebrate digital disruption," the event's website said.

"The TTA Pavilion has gathered some of the best minds in healthcare, living future, and tech startup industries, and it is sure to be one of the must-sees to discover the latest trends and tech innovation," MOST said.

In order to promote TTA’s profile among start-up ecosystems among New Southbound Policy (NSP) countries, TTA will be hosting the opening forum at 2019 InnovFest Unbound, "Scale Up Your Global Tech Ventures with Taiwan Tech Ecosystem." The forum’s special guests, Ceres’ Capital founder Yvonne Chen, and Singapore startup Botbot AI’s founder Chelsea Sim, "Will share their vision and experience on how Taiwan is a good fit in this ecosystem," MOST said.    [FULL  STORY]

HK-based consortium rejected for Taipei twin towers project

Focus Taiwan
Date: 2019/06/26
By Flor Wang, Christie Chen and Tsai Peng-min

Taipei Twin Tower design (Photo courtesy of Nan Hai Development Ltd.)

Taipei, June 26 (CNA) The Taiwan government has withdrawn its decision to award the construction contract for the "Taipei Twin Towers" project to a Hong Kong-based consortium and a Malaysian property developer, due to national security concerns, the Ministry of Economic Affairs (MOEA) said Wednesday.

Nan Hai Development Ltd. of Hong Kong and Malton Berhad of Malaysia had qualified last December in the bidding process as the most favored bidders for the multi-billion project in west Taipei, but in light of the former's close ties to China, the award of the contract to the two companies has been revoked, said Yang Shu-ling (楊淑玲), spokesperson for the MOEA's Investment Commission.

Nan Hai has been deemed a Chinese-funded enterprise because the financial statements of its parent company show that Nan Hai's administrative center and most of its employees and business operations are in China, while more than half of the board members of its parent company are Chinese citizens, Yang said.

Given that the pilot project is located in a specially designated area within Taipei Railway Station, which is the hub of Taipei's metro, bus, high speed rail and train systems, the project cannot be carried out by a consortium with such close links to China, she said.    [FULL  STORY]

CMC to launch electric scooters, charging stations

GROWING VOLUME: In addition to expanding its two-wheeled portfolio, the firm is to launch several new larger vehicles and forecast that sales would rise 2.7 percent

Taipei Times
Date: Jun 27, 2019
By: Kwan Shin-han  /  Staff reporter

China Motor Corp (CMC, 中華汽車), which markets vehicles under the Mitsubishi brand, plans to release new electric scooters, set up charging stations and introduce new vehicles in the second half of this year.

“We expect shipment of electric scooters to rise significantly this year, as we plan to introduce two new scooters next month, each with an engine displacement of between 115cc and 125cc,” CMC president Chen Chao-wen (陳昭文) said yesterday after the company’s annual shareholders’ meeting in Taipei.

A CMC official, who asked to remain anonymous, told the Taipei Times by telephone that the new scooters would have different functions, as one would be more suitable for delivering goods.

The company would adopt a new battery charging system rather than a battery swap solution for the new scooters, which could be charged at charging stations or at home, the official said.
[FULL  STORY] 

Under Armour to close store in Taipei’s Gongguan, signals decline for commercial circle

Real estate expert Sway reports that because landlords in the area continue to hike rents, specialty stores have disappeared

Taiwan News
Date: 2019/06/25
By: George Liao, Taiwan News, Staff Writer

Gongguan. (Wikimedia Commons photo)

TAIPEI (Taiwan News) – The Taiwan financial and real estate expert, known by the nickname "Sway," is predicting the Gongguan commercial circle near National Taiwan University (NTU) will decline, as reports suggest sporting goods brand Under Armour (UA) will close its Gongguan store at the end of this month, United Daily News (UDN) reported on Tuesday (June 25).

The rent for UA’s Gongguan store is reportedly NT$1 million a month. UA had agreed a contract to rent the store until August 2022, UDN reported.

Sway said the university’s commercial circle was originally designed to attract not only students but also tourists. However, since landlords have kept hiking rents, many of the specialty stores in the area have left and were replaced by international brands.

Sway added that these stores sell well-known brands and commodities, but lack character, and since they are ubiquitous do not provide a compelling reason to visit or shop in the area.
[FULL  STORY]

Hon Hai could assemble TV screens in Vietnam: report

Focus Taiwan
Date: 2019/06/25
By Chung Jung-feng and Frances Huang

Taipei, June 25 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. is studying the feasibility of setting up a production site in Vietnam to roll out TV screens, according to the Saigon Times.

In a report dated Monday, the Vietnamese newspaper said Hon Hai, also known as Foxconn in the global market, is mulling a plan to build a TV screen assembly plant in Quang Ninh province in northern Vietnam.

Hon Hai is expected to invest US$40 million in the initial phase of the new TV screen plant, to be built in the Dong Mai Industrial Park in Quang Yen Town, according to the report.

The report cited Harry Zhuo (卓憲宏), general director of Foxconn Vietnam, as saying the initial phase of the project is expected to create about 3,000 new jobs in Vietnam.    [FULL  STORY]

IPOs down on trade dispute fears

Taipei Times
Date: Jun 26, 2019
By: Natasha Li  /  Staff reporter

Only six companies launched initial public offerings (IPOs) on the Taiwan Stock Exchange in the first half of the year, half as many as during the same period last year, international consulting firm Ernst & Young said at a media briefing in Taipei yesterday.

The six IPOs raised NT$8.7 billion (US$279.6 million), a 48.3 percent increase year-on-year, with Wiwynn Corp (緯穎), a subsidiary of Wistron Corp (緯創), raising NT$5.96 billion, Ernst & Young said.

Ernst & Young assurance head Lin Tu (涂嘉玲) said the increase in raised capital contrasted with the decrease in the number of companies could reflect the rising importance of “quality over quantity.”

Another 12 companies launched IPOs on the Taipei Exchange in the first half of the year, down from 16 companies in the same period last year. They raised NT$2.75 billion, 35.7 percent less than the same period last year, Ernst & Young said.    [FULL  STORY8]

Taiwan investors prefer Vietnam, Indonesia over Philippines, says official in Manila

Taiwanese investment in Philippines suffered steep decline over 2018

Taiwan News
Date: 2019/06/24
By: Duncan DeAeth, Taiwan News, Staff Writer

(Pixabay photo)

TAIPEI (Taiwan News) – In an effort to encourage the Philippines to consider economic reforms to attract more foreign investment, Alfred Wang, an economic counselor at the Taipei Economic and Cultural Office in the Philippines, has stated that Vietnam, Indonesia, and Thailand are more attractive markets for Taiwanese investors.

According to the counselor, investors find regulations in the Philippines to be too “burdensome,” making markets in Vietnam and other Southeast Asian nations far more competitive.

Wang says that the Taiwanese government is doing what it can to attract investment in the Philippines as part of the Tsai administration’s New Southbound Policy.

Wang notes that the country possesses a young, robust labor force with a high level of English competency. However, the minimum wage in the Philippines remains too high for many potential investors when compared to other regional economies.    [FULL  STORY]

Revenues in retail and food sectors hit record May highs: MOEA

Focus Taiwan
Date 2019/06/24
By: Tsai Peng-min and Emerson Lim

Taipei, June 24 (CNA) Revenues in both the retail and the food and beverage sectors hit record highs in May as domestic demand showed stable growth during the month, the Ministry of Economic Affairs (MOEA) said Monday.

Retail sales rose 3 percent year-on-year to NT$319.5 billion (US$10 billion) in May, while revenues in the food and beverage industry registered 5.2 percent growth to NT$67.9 billion, according to a report released by the MOEA on Monday.

Both figures were the highest ever in May, the MOEA said.

Rising motor vehicle sales, newly opened department stores, the expansion of convenience stores, and strong demand for luxury goods drove up retail revenues in May, said Wang Shu-chuan (王淑娟), deputy head of the MOEA's statistics department.    [FULL  STORY]

Industrial output fell 3.05 percent in May

ONE BRIGHT SPOT: The computer, electronic goods and optical components industry grew 23.3 percent annually, the eighth consecutive month of double-digit growth

Taipei Times
Date: Jun 25, 2019
By: Natasha Li  /  Staff reporter

Industrial production fell back into negative growth last month, dropping 3.05 percent year-on-year, after growth of 1.04 percent in April, the Ministry of Economic Affairs said yesterday.

Although all sectors saw declines of more than 2 percent, the main cause was the 3.01 percent drop in the manufacturing sector, it said.

Last month’s performance was even greater than DBS Bank Ltd’s (星展銀行) estimate of a 1.7 percent contraction.

Despite the decline across the manufacturing sector, the output of the computer, electronic goods and optical components industry stood out with a year-on-year increase of 23.3 percent, a double-digit growth for an eighth month in a row, the ministry said.    [FULL  STORY]