Business and Finance

CPC estimates Gulf of Oman tanker ‘attack’ loss at NT$8 million

Focus Taiwan
Date: 2019/06/14
By: Lin Meng-ju and Frances Huang

Photo courtesy of Kyodo News

Taipei, June 14 (CNA) State-owned oil supplier CPC Corp., Taiwan, said Friday that an "attack" in the Gulf of Oman Thursday on a tanker the company chartered to deliver naphtha is expected to result in losses of about NT$8 million (US$253,968).


The preliminary assessment was made by the oil supplier after taking insurance payments into account, CPC Vice President Chiu Chia-shou (邱家首) said, adding that the "attack" would not have a major impact on the company's operations.

The Front Altair, which was charted by CPC to carry 75,000 tons of n3aphtha worth US$34 million, was one of two tankers hit by unknown objects from an unidentified source resulting in the vessel catching fire in an area near the United Arab Emirates.

The 23 non-Taiwanese crew members on the Front Altair, which is registered in the Marshall Islands, were rescued by another cargo ship in the area, the Hyundai Dubai.    [FULL  STORY]

Winbond reports uptick in demand

SITUATION ‘NORMAL’: Winbond chairman Arthur Chiao said the company has no major changes planned amid a US-China trade dispute, saying it would be short-term

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

Winbond Electronics Corp (華邦電子), the world’s biggest maker of NOR flash memory chips by shipment, yesterday said that customer demand has regained traction, a sign that the global memory industry has come out of the woods.

A supplier of niche memory chips, Winbond said that it did not plan to make a drastic capacity adjustment to counteract the short-term trade shock, given its bullish view of the long-term market.

Winbond is to continue with its NT$355 billion (US$11.3 billion) investment to build a 12-inch fab in Kaohsiung to meet rising customer demand, it said.

Construction began in October last year.

The factory is to start mass production in 2021 using 20 nanometer technology, it said.    [FULL  STORY]

Largan Precision approves cash dividend of NT$68 per share

Formosa News
Date: 2019/06/12

Largan Precision Company, a camera lens supplier to Apple, has approved its second-highest cash dividend per share in history. At an annual meeting today, shareholders approved a proposal to issue cash dividends of NT$68 per share. Largan executives say that even with blowback from the U.S.-China trade war, production lines are at full capacity. Largan expects to see orders rise in July, and it plans to press on with its expansion projects.

Shareholders at Largan Precision's general meeting have approved a cash dividend of NT$68 per share. They also approved changes to the board of directors. The Lin family's holding company took three board seats to become Largan's single largest corporate shareholder.    [FULL  STORY]

Foxconn says it can meet Apple’s need to pull iPhone production out of China if necessary

25 percent of Foxconn's production capacity is outside of China

Taiwan News
Date: 2019/06/12
By: George Liao, Taiwan News, Staff Writer

(Wikipedia photo)

TAIPEI (Taiwan News) — Hon Hai Precision Industry Co., more commonly referred to as Foxconn, said on Tuesday (June 11) that it's capable of moving iPhone production completely outside of China should the US-China trade war spin out of control, Liberty Times reported on Wednesday (June 12).

Foxconn is Apple’s biggest iPhone assembly partner.

The company’s statement came after the trade war between the U.S. and China showed signs of deepening, and media reports that Apple could pull iPhone production out of china if the trade war continues to escalate.

US President Donald Trump recently threatened to move forward with a plan to impose tariffs on about US$300 billion worth of additional goods from China after having increased the tariff rate on more than US$200 billion worth of Chinese goods from 10% to 25% last month.    [FULL  STORY]

Taiwan shares flat as tech gains offset financial stock weakness

Focus Taiwan
Date: 2019/06/12
By: Frances Huang

Taipei, June 12 (CNA) Shares in Taiwan closed little changed Wednesday as gains in the electronics sector offset losses suffered by financial stocks to keep the market above the 10,600-point mark, dealers said.

Escalating trade tensions between United States and China continued to haunt market sentiment, driving many investors to the sidelines and again limiting daily turnover, they said.

The weighted index on the Taiwan Stock Exchange (TWSE), the Taiex, ended up 7.90 points, or 0.07 percent, at 10,615.66, after moving between 10,566.37 and 10,630.69, on turnover of NT$100.89 billion (US$3.21 billion).

The market opened down 2.01 points and fell to the day's low in the middle of the morning after the Dow Jones Industrial Average closed down 0.05 percent overnight, stopping a six-session winning streak, dealers said.    [FULL  STORY]

Wistron eyeing production in US

RELOCATION: As part of its move out of China, the company is mulling expanding back home or in other countries such as Malaysia in light of the US-China dispute

Taipei Times
Date: Jun 13, 2019
By:: Natasha Li  /  Staff reporter

Contract electronics manufacturer Wistron Corp (緯創) yesterday said that it aims to set up a production

Wistron Corp chairman Simon Lin, center, speaks at the company’s annual shareholders’ meeting in Taipei yesterday.
Photo: CNA

facility in the US as the trade dispute between Washington and Beijing rages on.

“We sell one-third of our products in the US,” Wistron chairman Simon Lin (林憲銘) said at the annual shareholders’ meeting in Taipei, adding that the company is seeking to move one-third of its production out of China.

“We already have a site on the [US] west coast, but it is more oriented toward PM [product management], R&D [research and development] and sales,” Lin said.

The company also has an after-sales service center in Dallas, Texas, but it is equally unsuitable for production, he said.    [FULL  STORY]

Taiwan shares open lower

Focus Taiwan
Date: 2019/06/12
By: Frances Huang

Taipei, June 12 (CNA) The Taiwan Stock Exchange's main index opened down 2.01 points at 10,605.75 Wednesday on turnover of NT$1.74 billion (US$55.41 million).     [SOURCE]

Innolux bets on assembly for revenue

BRANCHING OUT: The company needs the TV assembly business to offset a slump in the flat-panel industry, chairman Jim Hung told reporters at a factory in Tainan

Taipei Times
Date: Jun 12, 2019 – Page 12 
By: Lisa Wang  /  Staff reporter, in TAINAN

Innolux Corp (群創) expects TV assembly to make up 25 percent of its overall TV business revenue this year,

Photo: Lisa Wang, Taipei Times

thanks to yield improvement and customer gains, a company executive said yesterday.

That would represent a significant increase from last year’s 8 percent contribution and a 1 percent share the previous year, when the company returned to assembling TVs.

The outlook bodes well for the LCD panelmaker as it branches out to new businesses to cope with high volatility in the flat-panel industry.

The company earlier this year established three wholly owned subsidiaries in Taiwan and China as it prepares to spin off its auto and X-ray machine display businesses.

“We have to assemble TVs to counterbalance” a slump in the flat panel industry, chairman Jim Hung (洪進揚) told reporters at Innolux’s plant in Tainan’s Southern Taiwan Science Park (南部科學工業園), citing the firm’s goal to reshape its business model in three years.

Seeking revenue growth would be high among the company’s priorities and manufacturing TVs would be a major strategy to reach that goal, Hung said.    [FULL  STORY]

Gogoro, Yamaha to team up for first time on an electric scooter

Focus Taiwan
Date: 2019/06/10
By: Flor Wang and Chang Liang-chih

Taipei, June 10 (CNA) Yamaha Motor Taiwan Co., Ltd. announced Monday that it will

CNA file photo

launch a new electric scooter this summer in partnership with Taiwan Gogoro Ltd., in what will be the first collaboration between the two companies on a green vehicle.

In a short video, Yamaha said the scooter, dubbed the EC-05, was developed and will be manufactured by Gogoro but was “styled by Yamaha Japan” based on an agreement signed by the two companies in 2018.

It will be sold exclusively in Taiwan through Yamaha’s distribution network starting in August but will have access to the Gogoro Energy Network’s 1,000-plus GoStations across Taiwan to swap batteries, according to the video.

Yamaha, which has had a presence in Taiwan’s market since 1996 and enjoys annual sales of 290,000 scooters, said it hopes to provide more convenient motorbikes to consumers in Taiwan through the partnership with Gogoro.  [FULL STORY]

Exports decrease 4.8%, extending drop

SOURED OUTLOOKS: It was the seventh straight month that the critical economic gauge posted a negative cyclical movement without any sign of improvement

Taipei Times
Date: Jun 11, 2019
By: Crystal Hsu  /  Staff reporter

The nation’s exports last month fell 4.8 percent from a year earlier to US$27.72 billion, extending April’s 3.3 percent decline, as escalating US-China trade tensions cooled demand for most products and soured outlooks, the Ministry of Finance said yesterday.

“Firms have misgivings about doing business as uncertainty increases,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.

It is the seventh straight month that the critical economic gauge posted a negative cyclical movement without any sign of improvement, Tsai added.

The Directorate-General of Budget, Accounting and Statistics last month projected that exports might remain negative for the rest of the year, rather than posting fractional growth as previously forecast.    [FULL  STORY]