Business and Finance

Taiwanese company Foxconn may face obstacles in Wisconsin under new Governor

Democrat Governor-elect Tony Evers heavily criticized incumbent Scott Walker for Foxconn deal during his campaign 

Taiwan News 
Date: 2018/11/12
By: Duncan DeAeth, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – After the recent U.S. elections, the new

Wisconsin Democrat Governor-elect Tony Evers (By Associated Press)

Governor of Wisconsin, a Democrat, may have set his sights on undermining the state’s agreement with the Foxconn Corporation.

In the days since Tony Evers defeated incumbent  Republican Governor Scott Walker, Evers has stated plainly that he hopes to scrap the quasi-private, state-funded agency that was responsible for negotiating the deal with Foxconn, the Wisconsin Economic Development Corporation (WEDC).

Lawmakers and media outlets in Wisconsin are already speculating about what appears to be an inevitable legal battle on the horizon concerning the WEDC, and what potential damage might be caused to the Foxconn agreement.

However, local media outlets indicate that the WEDC cannot be scrapped simply by order of the governor, which means the state legislature must be involved in any changes involving the WEDC.    [FULL  STORY]

Domestic fuel prices to drop for fourth straight week

Focus Taiwan
Date: 2018/11/11
By: Tsai Peng-min and Evelyn Kao

Taipei, Nov. 11 (CNA) Fuel prices in Taiwan will fall for the fourth

CNA file photo

consecutive week in response to a drop in international crude oil prices last week, the country’s two major suppliers said Sunday.

The price of gasoline and diesel will be lowered by NT$0.7 (US$0.023) and NT$0.8 per liter, respectively, starting at midnight Sunday, state-owned refiner CPC Corp., Taiwan said.

After the drop, the biggest this year, prices at CPC gas stations nationwide will be NT$28.5 per liter for 92 octane unleaded, NT$30.0 per liter for 95 unleaded, and NT$32.0 per liter for 98 unleaded, while super diesel will be NT$26.5 per liter.

Meanwhile, privately owned Formosa Petrochemical announced identical price cuts, with effect from 1 a.m. Monday, which means prices at its gas stations will be NT$28.5 per liter for 92 octane unleaded, NT$29.9 per liter for 95 unleaded, NT$32.0 per liter for 98 unleaded and NT$26.2 per liter for super diesel.    [FULL  STORY]

FPG touts bonuses, profit to September

Q4 DOWNTURN? Capital Investment said that ethylene capacity in the US might affect downstream prices in Asia, which, among other factors, could bring net profit down

Taipei Times
Date: Nov 12, 2018
By: Staff writer, with CNA

Formosa Plastics Group (FPG, 台塑集團), the nation’s largest industrial conglomerate, is likely to give employees year-end bonuses equivalent to six months’ salary, FPG chairman William Wong (王文淵) said on Saturday.

As FPG’s bottom line was good in the first three quarters, the group might maintain its policy for Lunar New Year bonuses, Wong said.

In addition, FPG would be giving out red envelopes to employees to express its gratitude for their hard work, he said.

“The amount of cash in the red envelopes has not yet been decided,” Wong said at the group’s annual sports day.    [FULL  STORY]

Taiwan haircare brand O’Right wins Sustainable Beauty Award for 2nd year

The Taoyuan based brand was once again honored for its ‘Sustainable Packaging’

Taiwan News
Date: 2018/11/09
By: Duncan DeAeth, Taiwan News, Staff Writer

(O’right product image)

TAIPEI (Taiwan News) – This week in Paris, the annual Sustainable Beauty Awards were held with a Taiwanese brand recognized for the second year in a row for its impressive commitment to producing environmentally friendly beauty products.

The internationally recognized brand O’right, based in Taoyuan, remains on the rise for both its quality hair care and skin care products, as well as its dedication to the environment.

This year the brand received three nominations in categories of New Sustainable Product, Sustainable Packaging, and for being a Sustainability Pioneer.

For the second year, O’Right was named the winner of the Sustainable Packaging category for their innovative shampoo bottle and pump design, which is made from 100 percent recyclable materials, and which also boasts a 66.29 percent reclamation rate.
[FULL  STORY]

TSMC posts second highest ever monthly sales

Focus Taiwan
Date: 2018/11/09
By: Chang Chien-chung and Frances Huang 

Taipei, Nov. 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, posted its second highest ever monthly sales in October, data released by TSMC showed Friday.

Market analysts said the strong showing in October was largely a product of solid demand for chips made by TSMC’s sophisticated 7 nanometer process, the latest technical advance the chipmaker has launched into commercial production, which carry a higher price tag.

In a statement, TSMC said its consolidated sales for October totaled NT$101.55 billion (US$3.30 billion), up 7 percent from the previous month and up 7.4 percent from a year earlier. That figure was only slightly lower than the monthly record of NT$103.70 billion in March.

In the first 10 months of this year, TSMC’s consolidated sales totaled NT$843.25 billion, up 6.2 percent from a year earlier.    [FULL  STORY]

Chunghwa Precision predicts better Q4 this year

SEASONAL FACTORS:Although revenue could fall less than it did in the fourth quarter last year, one analyst said a 10 percent quarter-on-quarter decline could be expected

Taipei Times
Date: Nov 10, 2018
By Lisa Wang  /  Staff reporter

Chunghwa Precision Test Tech Co (CHPT, 中華精測), which provides probe card testing services, yesterday said that revenue would slide at a milder pace this quarter compared with the same period last year, as increasing contributions from new probe businesses would offset seasonal weakness.

“Revenue will fall slightly in the fourth quarter. The [quarterly] correction will not be as significant as we experienced [in the fourth quarter] last year,” CHPT president Scott Huang (黃水可) told an investors’ conference in Taipei.

“We have diversified our product lineups. Those new products are to contribute more revenue in the fourth quarter, which will mitigate the seasonal correction,” Huang said.

In the fourth quarter last year, the firm saw revenue tumble 41 percent quarter-on-quarter to NT$545 million (US$17.69 million), as one of its key clients delayed its upgrade to 7-nanometer technology.    [FULL  STORY]

Electronics giant Yageo to invest NT$10 billion in Taiwan’s Kaohsiung

Passive components maker is latest Taiwanese company to ‘return home’ amid U.S.-China trade war

Taiwan News
Date: 2018/11/08
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Yageo Corporation (國巨), a Taiwanese manufacturer of passive

Yageo Corp. Chairman Pierre Chen. (By Central News Agency)

components for the electronics industry, is to invest more than NT$10 billion (US$326 million) in Kaohsiung, in another example of top Taiwanese companies returning to the island.

The company makes passive devices, such as resistors, capacitors, and inductors, for consumer, automotive and industrial clients.

Yageo approved a proposal Thursday to purchase a plot of more than 20,000 square meters in Kaohsiung’s Dafa industrial zone for NT$790 million (US$25.7 million) as the location for a new factory, the Central News Agency reported. The plan was only the start of a project to invest at least NT$10 billion over three years, the company said.

Yageo said its basic strategy in the face of the recent U.S.-China trade war was still to leave its roots in Taiwan while continuing to develop around the world. The island’s government has been encouraging Taiwanese businesses, which over the past decades invested massively in China, to return home and focus more on manufacturing in Taiwan.
[FULL  STORY]

Taiwan shares end higher, remain below 10,000 points

Focus Taiwan
Date: 2018/11/08
By: Chang Chien-chung and Evelyn Kao 

Taipei, Nov. 8 (CNA) Taiwan shares moved higher but remained below the 10,000-point mark Thursday following a rally on Wall Street overnight.

The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, ended up 36.96 points, or 0.37 percent, at 9,945.31 after moving between 9,938.55 and 10,014.42. Turnover totaled NT$118.44 billion (US$3.86 billion).

The market opened up 50.12 points at 9,958.47 in a knee-jerk reaction to strong gains posted by U.S. markets following the midterm elections, where the Dow Jones Industrial Average closed up 2.13 percent, the S&P 500 index ended up 2.12 percent and the tech-heavy Nasdaq index ended up 2.64 percent Wednesday.

The Taiex at one point breached 10,000 points as investors moved in to pick up shares in the bellwether electronics sector, pushing the electronics sub-index up by over 1 percent at one stage, but selling pressure emerged, paring away much of their early gains.
[FULL  STORY]

Pegatron to shift output to EU, Mexico

NORMAL SEASON: The firm’s chief financial officer rejected reports that Apple cut orders due to disappointing high-season demand, saying its plants are running at full capacity

Taipei Times
Date: Nov 09, 2018
By: Ted Chen  /  Staff reporter

Contract electronics manufacturer Pegatron Corp (和碩) yesterday said that it has begun exploring overseas expansion options to cope with escalating US-China trade tensions.

The company is to reallocate production from China to its existing sites in the Czech Republic and Mexico as it reviews its global footprints, Pegatron chief executive officer S.J. Liao (廖賜政) told an investors’ teleconference, adding that it is also considering setting up new manufacturing bases in Southeast Asia.

Although reallocating production capacity and moving equipment between the company’s locations would not require substantial capital expenditure, the change would push up management costs, Liao said.

Setting up brand new production lines in Southeast Asia would be costlier and it would take two to three years before such facilities would come online, he added.
[FULL  STORY]

Qualcomm promises to play fair, investment in Taiwan will boost 5G development

The chairwoman of Taiwan’s Fair Trade Commission expressed optimism for Qualcomm’s industrial investment program, and its establishment of a tech hub in Hsinchu

Taiwan News
Date: 2018/11/07
By: Duncan DeAeth, Taiwan News, Staff Writer

(By Central News Agency)

TAIPEI (Taiwan News) – The IC chip manufacturer Qualcomm announced earlier this year that they would be opening a research and development center and tech hub in Taiwan in the Hsinchu Science and Industrial Park.

On Nov. 7, the chairwoman of Taiwan’s Fair Trade Commission, Huang Mei-ying (黃美瑛), discussed the country’s expectations for Qualcomm’s proposed five year industry investment plan.

Qualcomm’s decision to invest in Taiwan and establish the tech hubs came about as the result of an anti-trust settlement on Aug. 10. The company was originally charged in October 2017 of violating the Intellectual Property rights of a domestic competitor, reports CNA.

After first paying a portion of the fines demanded, NT$2.73 billion (US$88.84 million), Qualcomm negotiated with Taiwan’s Intellectual Property Court and in lieu of paying the remaining NT$23.4 billion (US$762 million), Qualcomm agreed to invest US$700 million into Taiwan to develop 5G and other technologies over the next five years.
[FULL  STORY]