Business and Finance

Financial firms recover from slump

TOPPING THE CHARTS: Cathay Financial Holding Co bounced back from a net loss of NT$4.12bn in December to record net income of NT$4.7bn last month

Taipei Times
Date: Feb 18, 2019
By: Kao Shih-ching  /  Staff reporter

Taiwan’s 15 listed financial conglomerates last month saw their combined earnings rise from December last year amid reduced market volatility, with six of the companies out of the red.

Aggregate net income totaled NT$31.21 billion (US$1.01 billion) last month, compared with net losses of NT$5.99 billion in December last year, corporate data showed.

However, that represented a 43.05 percent decline from NT$54.8 billion in January last year.

Cathay Financial Holding Co (國泰金控), the nation’s largest financial holding firm by market value, posted NT$4.7 billion in net income last month, or earnings per share of NT$0.37, making it the most profitable among the 15.    [FULL  STORY]

Taiwan maintains global leadership in IC wafer fab capacity

IC Insights: Taiwan has maintained its lead in production of integrated circuit 200mm wafer fab capacity for the 4th consecutive year

Taiwan News
Date: 2019/02/16
By: Taiwan Today,Agencies

TAIPEI (Taiwan Today) — Taiwan maintained its global leadership in integrated circuit

(Photo from TSMC/ Taiwan Today) (By Agencies)

200mm-equivalent wafer fab capacity for the fourth consecutive year, according to U.S.-based IC Insights Inc.

According to a report recently released by the semiconductor research firm, Taiwan boasts an average monthly capacity of 4.13 million wafers as of December 2018. This represents a global share of 21.8 percent, positioning the country ahead of South Korea, 21.3 percent; Japan, 16.8 percent; North America, 12.8 percent; and China, 12.5 percent.
[FULL  STORY]

Taiwan’s economy forecast to weaken over next 6 months: survey

Focus Taiwan
Date: 2019/02/16
By: Liu Li-jung and Frances Huang 

Taipei, Feb. 16 (CNA) Taiwan’s economy is expected to continue to weaken over the next six months in the wake of lower investment and private consumption, according to the German think-tank Ifo Institute.

In its latest quarterly World Economic Climate survey released earlier this week, Ifo said the economic climate indicator in Taiwan for the first quarter of this year fell from minus 42.1 in a similar survey released three months ago to minus 52.9 points.

The fall in the indicator for Taiwan indicates the local economy is expected to fare worse over the next six months.

Ifo cited economic experts as saying Taiwan will see its overall economy slow down, with capital formation and private consumption falling over the next six months.
[FULL  STORY]

AIT: Taiwan is a ‘super-innovator’ in technology, digital economy

AIT Director discussed the future of semiconductor industry with Hsinchu mayor Wednesday

Taiwan News
Date: 2019/02/15
By: Ryan Drillsma, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — The American Institute in Taiwan (AIT) published a Facebook

Hsinchu mayor Lin Chih-chien (left) with AIT Director Brent Christensen (right) (AIT image)

post Thursday describing Taiwan as a “fellow super-innovator.”

The message states Taiwan and the U.S. have enjoyed a cooperative partnership in the field of technology for many years, with the city of Hsinchu as the epicenter of their relationship.

The U.S. and Taiwan held their first joint digital economy forum in 2015, which each year since has served as a platform for experts from both sides to share their knowledge, and for launching joint programs and initiatives.

AIT Director Brent Christensen reportedly spent Wednesday discussing the future of the semiconductor industry with experts in Taiwan and spoke to Hsinchu mayor Lin Chih-chien (林智堅) about how to further deepen bilateral cooperation.    [FULL  STORY]

TSMC January sales fall to 6-month low

Focus Taiwan
Date: 2019/02/15
By: Chang Chieh-chung and Frances Huang 

Taipei, Feb. 15 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, reported a six-month low for sales in January, which analysts chalked up to weakening global demand.

In a statement released Friday, TSMC said it posted consolidated sales of NT$78.09 billion (US$2.53 billion) in January, down 13.1 percent from a month earlier and also down 2.1 percent from a year earlier.

It was the third consecutive month that TSMC’s monthly sales fell, and the January figure was the lowest since the company reported sales of NT$74.37 billion for July 2018, TSMC data showed.

Analysts felt slowing global demand was a bigger factor in the drop in sales than a production problem encountered by the company in January and reported to the Taiwan Stock Exchange on Jan. 29.    [FULL  STORY]

Electronics resilient as exports dip 0.3%

NOT ALL NEGATIVE: Despite the US-China trade spat, Taiwan’s server exports to the US increased to US$230 million last month from US$2 million a year earlier

Taipei Times
Date: Feb 16, 2019
By: Crystal Hsu  /  Staff reporter

Exports last month contracted a fractional 0.3 percent to US$27.3 billion from a year earlier, as electronics shipments showed resilience amid a global economic slowdown, the Ministry of Finance said yesterday.

The figure is the second highest ever recorded in January and would have shown modest growth if export prices had not fallen by 3.9 percent, the ministry said.

“It is not clear if companies frontloaded shipments to avoid disruptions over the Lunar New Year holiday this month,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.

Tsai had earlier predicted a 2.5 percent decline for last month.    [FULL STORY]

Taiwan maintains lead in global wafer capacity

Radio Taiwan International
Date: Feb. 15, 2019
By: Chang Chien-chung and Evelyn Kao 

TAIPEI (CNA) — Taiwan has maintained its global lead in wafer production capacity,

** FILE ** A UMC Group laboratory technician tests silicon wafers at Science-Based Industrial Park Tuesday, Sept. 28, 1999, in Hsinchu, 55 kilometers (34 miles) from Taipei. Taiwan is investigating chip giant United Microelectronics Corp. for allegedly making illegal investments in rival China, prosecutors said Wednesday, Feb.16, 2005. Taipei strictly controls chipmakers’ investments in mainland China, with companies required to apply for permission before going ahead with such deals. Prosecutors said they were investigating links between UMC and a Chinese chipmaker, He Jian Technology (Suzhou). He Jian was founded in 2001 by former UMC employees and began producing semiconductors in June 2003. (AP Photo/Wally Santana, File)

according to Semiconductor market research firm IC Insights.

As of December 2018, Taiwan led all regions/countries in wafer capacity with a 21.8 percent share, a slight increase from 21.3 percent in 2017, and continued its status as the world wafer capacity leader.

Taiwan’s capacity share was only slightly ahead of South Korea, which accounted for 21.3 percent of global wafer capacity in 2018, according to the recently released Global Wafer Capacity report by IC Insights.

Taiwan first became the global wafer capacity leader in 2015, according to the report.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip maker, and Samsung and SK Hynix of South Korea accounted for the vast share of wafer fab capacity in each country and were the top three capacity leaders worldwide.    [FULL  STORY]

Japan open to Taiwan’s CPTPP bid, urges it to solicit more support

Taiwan News
Date: 2019/02/14
By:  Central News Agency

The CPTPP at its founding meeting. (By Associated Press)

The Japanese government welcomes all countries that can accept the principles and standards of a Japan-led international economic bloc, Taiwan included, and has called on Taipei to solicit support from other economic bloc members, a Taiwanese diplomat said Thursday.

Taiwan’s government has confirmed Tokyo’s official stance in welcoming Taipei’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Taiwan-Japan Relations Association Deputy Secretary-General Hsieh Bor-huei (謝柏輝) told a news briefing.

It has always been Japan’s stance that such a trade deal will be open to countries or regions that accept its principles and are willing to meet its standards, Hsieh said.

He said a previous comment made by Japanese Foreign Minister Taro Kono, who said Taiwan’s decision to maintain a ban on Japanese food products from nuclear disaster-affected areas might hamper Taipei’s CPTPP bid was made in response to media inquires and may reflect his personal view only.    [FULL  STORY]

Gou’s Guangzhou LCD plant to start production in October

Focus Taiwan
Date: 2019/02/14
By: Chung Jung-feng and Flor Wang 

Taipei, Feb. 14 (CNA) A liquid-crystal display (LCD) plant in Guangzhou, in which Hon Hai Precision Industry Co. Chairman Terry Gou (郭台銘) has invested, is slated to start mass production in October, according to the company.

An advanced 8K mask aligner, a device used to manufacture integrated circuits, was installed at the facility on Thursday as scheduled.

Equipment testing at the plant will be conducted in June, with annual output expected to be worth about 92 billion Chinese yuan (US$13.6 billion) a year.

Gou said he expects mass production at the plant to help foster creative industries and connect key production bases in the Guangdong-Hong Kong-Macao Greater Bay area, which he likened to Route 101 in Silicon Valley in the United States.    [FULL  STORY]

Innolux sees loss as LCD prices plunge

BOTTOMING OUT? The firm forecast prices for large-sized panels would stabilize this quarter, but said sales would fall, while prices for smaller panels could slide

Taipei Times
Date: Feb 15, 2019
By: Lisa Wang  /  Staff reporter

Innolux Corp (群創), an LCD panel manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), yesterday reported its first quarterly losses in about two years in the fourth quarter of last year as prices plunged due to an overcapacity-driven downcycle.

The performance heralded a challenging year for the industry and the company this year.

Downside risks are growing due to uncertainty over the global economy and increased panel supply from China, which puts pressure on prices, Innolux said.

To cope with the downturn, Innolux said it plans to optimize its production portfolio and boost product value.    [FULL  STORY]