Business and Finance

Motech to cut at least 300 contract jobs

INDUSTRY SLUMP: The workforce reduction started when the company shut down a solar wafer production line in June — affecting 160 employees — to stem losses

Taipei Times
Date: Sep 18, 2018
By: Lisa Wang  /  Staff reporter

Motech Industries Inc (茂迪) yesterday said it plans to eliminate more than 300 contract jobs soon to reduce costs and would not rule out cutting full-time positions, as the solar cell maker struggles to ride out a severe slump in the industry.

The workforce reduction started when Motech shut down a solar wafer production line in June — affecting 160 employees — to stem losses, as market demand weakened when solar installations in China began to slow in June.

“To quickly respond to market changes, the company will adjust personnel based on customer orders and required production capacity. The company’s goal is to streamline operations,” Tainan-based Motech said in a filing with the Taiwan Stock Exchange yesterday.

Motech plans to scale down operations to improve competitiveness and financial performance in a depressed market, the company said.    [FULL  STORY]

Friendlier rules seen to spur virtual currency trading in Taiwan

Digitimes
Date: 14 September 2018
By: Max Wang, Taipei; Willis Ke, DIGITIMES

Taiwan has formulated relatively friendlier regulations governing virtual currency exchanges, which is expected to help the country’s trading of digital tokens expand significantly, according to David Pan, president of ACE Exchange, a digital asset trading platform.

Speaking at Global Blockchain Smart Application Forum held recently in Taipei, Pan said that the Taiwan government has regarded digital currencies as a kind of commercial merchandise and allowed initial coin offering (ICO) launches. In addition, the government has been active in pushing for self-regulated practices by operators of digital token trading houses while also moving to build related supervision mechanisms.
[FULL  STORY]

Gogoro and Yamaha mull new electric scooter partnership

Gogoro and Yamaha consider new scooter partnership based on Gogoro’s design and manufacturing expertise

Taiwan News
Date: 2018/09/14
By: Scott Morgan, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Taiwan’s Gogoro Inc. and Japan’s Yamaha Motor Co. announced that the pair will look into a partnership to manufacture Yamaha-branded electric scooters inspired by Gogoro designs, Yamaha said in a statement on Sept. 11.

Yamaha said that the potential partnership will lead to Yamaha-branded scooters being made and joint-developed by Gogoro, as well as sharing of Gogoro’s Taiwan battery swapping network.

Gogoro is a leader in electric scooters in both Taiwan and the world more broadly. The company has seen strong sales in recent years, and is currently in a push to expand its battery system throughout Taiwan.

Taiwan’s electric scooter market is heating up, off the back of a potential ban of petrol scooters entering into force perhaps as early as 2035. Competitors Kymcoand SYM have recently introduced new electric scooters, and are investing heavily in the emerging technology.    [FULL  STORY]

Taiwan flat panel firms listed on Dow Jones Sustainability World Index

Focus Taiwan
Date: 2018/09/14
By: Pan Chih-yi and Frances Huang

Taipei, Sept. 14 (CNA) AU Optronics Corp. (AUO) and Innlux Corp., the two largest flat panel makers in Taiwan, have been listed on the Dow Jones Sustainability World Index (DJSI-World).

In a statement released on Friday, AUO said it was the ninth consecutive year for the company to become a constituent of the DJSI-World, which showed its efforts in corporate governance and green industrial innovations have been recognized worldwide.

Since 2010, AUO has joined the assessments by the DJSI, and this year, the company ranked among the top six firms in the ITC Electronic Equipment, Instruments & Components category of the index, being chosen from a total of 52 companies worldwide competing to be selected in this category.

AUO said the company scored high in climate strategy, risk and crisis management, and supply chain management in the assessment.    [FULL  STORY]

Loans recovery bolsters Mega earnings

NEW HORIZONS: The firm, which has posted healthy earnings this year, said buying a life insurer would boost profits, while Internet activities could draw younger clients

Taipei Times
Date: Sep 15, 2018
By: Crystal Hsu  /  Staff reporter

State-run Mega Financial Holding Co’s (兆豐金控) earnings momentum remained healthy through the first two months of the third quarter, after a modest pickup in the first half of the year, thanks to improving loan demand, as well as fee and investment incomes, it said yesterday.

The bank-focused conglomerate expressed interest in acquiring a life insurance company to widen its activities, but added that it would be difficult to find friendly targets in Taiwan, despite policy encouragement from the government.

“The absence of a life insurance subsidiary is the main reason Mega Financial lags behind the nation’s top three financial conglomerates in profitability and assets,” Mega Financial president David Hu (胡光華) told an investors’ conference in Taipei, referring to Cathay Financial Holding Co (國泰金控), Fubon Financial Holding Co (富邦金控) and CTBC Financial Holding Co (中信金控).

Cathay Financial and Fubon Financial both achieved earnings of NT$4 per share in the year through last month, compared with NT$1.54 for Mega Financial.    [FULL  STORY]

Taiwan, Still a Semiconductor Success Story

Taiwan’s companies retain a global edge despite efforts by China to compete by spending huge sums on tempting their talent.

The News Lens
Date: 2018/09/14
By: By Matthew Fulco, Taiwan Business TOPICS Magazine

Credit: Micron

For years, industry analysts have cautioned that Chinese competitors in the semiconductor sector would steadily erode the technology advantages of Taiwanese chipmakers, ultimately wooing away many local chip-makers’ customers with lower prices.

Despite China’s rapid progress in the semiconductor sector in recent years, Taiwan has thus far been able to leverage its considerable strengths to ward off that challenge. At the same time, local IC (integrated-circuit) makers know they will need to be vigilant to remain ahead of their Chinese competitors. As semiconductors are among Taiwan’s most important exports, it can’t afford to cede the industry to China.

In its Made in China 2025 plan, Beijing has targeted semiconductors as a strategic industry it aims to dominate. Since 2015, China has surpassed Taiwan in terms of annual output value for IC design, one of the main segments of the semiconductor industry. It is also closing the gap with Taiwan in another area, IC packaging and testing.

Two dozen Taiwanese companies in China mulling returning home: MOEA

Uncertainty over U.S.-China trade dispute is driving many companies away from the Chinese market

Taiwan News
Date: 2018/09/13
By: Huang Tzu-ti, Taiwan News, Staff Writer

Delta Group (Image by Delta website)

TAIPEI (Taiwan News) – At least two dozen Taiwanese companies are considering returning to Taiwan amid the escalating trade war between the U.S. and China, said Minister of Economic Affairs Shen Jong-chin (沈榮津).

Taiwanese corporations involved with internet, communications, electronics, and transportation industries which have built a presence in China are mulling relocation back to Taiwan, including big name companies such as Quanta Computer (廣達), Compal Electronics (仁寶), Pegatron (和碩), Delta Electronics (台達電), and Sercomm Corporation (中磊), reported Liberty Times on Sept. 13.    [FULL  STORY]

Economics minister meets with U.S. trade officials

Focus Taiwan
Date: 2018/09/13
By: Liao Yu-yang, Elaine Hou and Romulo Huang

Taipei, Sept. 13 (CNA) Minister of Economic Affairs Shen Jong-chin (沈榮津) met with

CNA file photo

United States trade officials Thursday at his office, discussing a wide range of trade and investment issues.

Prior to the meeting with the U.S. delegation headed by Acting Assistant U.S. Trade Representative for China Affairs Terrence J. McCartin, Shen said the two sides would discuss bilateral trade and economic issues, while seeking to further strengthen cooperation during the meeting.

Asked if he would ask the U.S. to grant a tariff exemption for imports of Taiwan’s steel and aluminum products, Shen said that would depend on how the discussions progressed.

As of press time, the Ministry of Economic Affairs had not released any information about the meeting.    [FULL  STORY]

Ministry keeps power rates unchanged

LONGER SUMMER? An economy ministry official said electricity consumption data showed peaks in May, which might be added to the months when rates are higher

Taipei Times
Date: Sep 14, 2018
By: Lisa Wang  /  Staff reporter

The Ministry of Economic Affairs yesterday kept electricity rates unchanged for the next

Deputy Minister of Economic Affairs Tseng Wen-sheng, center, speaks at a news conference in Taipei yesterday.  Photo: CNA

six months, rejecting a proposal by Taiwan Power Co (Taipower, 台電) for an 8.21 percent hike — despite regulations limiting increases to 3 percent — as the government aims to stabilize consumer prices amid rising global crude oil prices and flooding in the nation’s south last month.

The electricity rate is to stay at NT$2.6253 per kilowatt-hour, Deputy Minister of Economic Affairs Tseng Wen-sheng (曾文生) said at a media briefing after the committee to review electricity prices concluded a 2.5-hour meeting.

“Our main consideration is consumer prices,” Tseng said. “We do not want to see consumer prices following the upswing in global fuel prices.”

Global crude oil prices might pull back later this year, but consumer prices might not follow, because they have less flexibility, Tseng said.    [FULL  STORY]

CAL, Tigerair Taiwan to partially resume flights to Osaka

Focus Taiwan
Date: 2018/09/12
By: Lee Hsin-Yin

Kansai International Airport (File photo, photo courtesy of Kyodo News)

Taipei, Sept. 12 (CNA) Taiwan-based China Airlines (CAL) and Tigerair Taiwan said Wednesday they will restart some flights to Osaka as typhoon-stricken Kansai International Airport has resumed partial services.

CAL said it will fly a total of 18 round-trip flights between Sept. 14 and Sept. 20, adding that it will use bigger aircraft for flights CI154/155 between Taiwan Taoyuan International Airport and Chubu Centrair International Airport in Nagoya, which is close to Kansai airport, by the end of September.

Larger aircraft will also be used for flights CI178/179 Sept. 16 and CI278/279 Sept. 17 between Taoyuan and Takamatsu Airport, the carrier said.

In addition, CAL said, it will use bigger aircraft for flights CI100/101 between Taoyuan and Tokyo Narita by the end of September.    [FULL  STORY]