Business and Finance

Taiwan’s top companies over-reliant on Apple: report

Focus Taiwan
Date: 2018/06/28
By: Chiu Po-sheng and William Yen

Taipei, June 28 (CNA) Six of Taiwan’s top 10 corporations by net revenue are electronics companies that are part of Apple’s supply chain, resulting in an over-reliance on the American multinational technology company, according to a report by China Credit Information Service (CCIS) Thursday.

The CCIS report, which looked at the largest corporations in Taiwan, further noted that the Taiwanese firms that are part of Apple’s supply chain make several trillion Taiwan dollars in annual revenue combined.

However, in the long run, revenue is too concentrated on one international brand, which is a major concern for Taiwan’s electronics industry, CCIS pointed out.

The top 10 companies are all familiar names with iPhone assembler Hon Hai Precision Industry Co. leading the way as the country’s largest company by net revenue for 13 consecutive years, the report showed.    [FULL  STORY]

Ennoconn to upgrade Foxconn factories

WAY IN: The firm said it aims to sell smart manufacturing solutions to 15 million Chinese factories and hopes break into the market by upgrading the plants of its parent, Hon Hai

Taipei Times
Date: Jun 29, 2018
By: Lisa Wang  /  Staff reporter

Ennoconn Corp (樺漢科技), an industrial computer manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), yesterday said it is targeting China’s 461 billion yuan (US$69.6 billion) smart manufacturing market.

The company, which started as a traditional industrial computer manufacturer, has over the past few years expanded into the emerging field of smart manufacturing through a slew of mergers and acquisitions at home and abroad.

The New Taipei City-based company hopes to leverage the strength of Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside Taiwan, to expand its reach in China by introducing smart solutions including hardware, software and services to the 38 Chinese manufacturing “campuses” operated by Foxconn, Ennoconn chairman Steve Chu (朱復銓) told investors.

Each of Foxconn’s business groups has at least 20,000 machines that need to be upgraded and provided with smart manufacturing capabilities, Chu said.
[FULL  STORY]

Foxconn and Siam Cement team up for joint venture in southern China

The joint venture will tap into Asia’s growing e-commerce market

Taiwan News 
Date: 2018/06/27
By: Scott Morgan, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Taiwan’s Foxconn Technology Group and Thailand’s Siam

Foxconn signage. (By Associated Press)

Cement Group will set up a logistics and supply chain joint venture, connecting ASEAN to south China in a bid to tap into the region’s growing e-commerce market.

The Guangxi-based joint venture will specialize in high-tech electronics, fine food and e-commerce.

The partnership will make use of Siam Cement’s expertise in logistics and Foxconn’s wide-ranging business networks.

The joint venture will help Foxconn increase its presence in Southeast Asia and also help Siam Cement expand into China.    [FULL  STORY]

Super trade show Food Taipei 2018 kicks off

Focus Taiwan
Date: 2018/06/27
By: Liao Yu-yang and William Yen 

Taipei, June 27 (CNA) Food Taipei 2018, one of the major trade shows in Asia, opened Wednesday at Taipei World Trade Center, with the participation of more than 1,600 exhibitors from 37 countries around the world, the organizers said Wednesday.

The four-day trade show consists of five trade events running simultaneously, the Taiwan External Trade Development Council (TAITRA) said in a press release.

It said a total of 1,628 exhibitors are displaying products in the five segments of the trade fair that feature food; food processing and pharmaceutical machinery; packaging; halal foods; and hotel, restaurant and catering.

Over 30 national-themed pavilions were set up at the trade show while approximately a third of all exhibitors came from abroad, TAITRA Chairman James Huang (黃志芳) said.    [FULL  STORY]

Wafer Works eyes NT$10bn revenue

‘SELLER’S MARKET’: Demand has greatly surpassed supply in the silicon wafer market and prices will continue to climb in the third quarter, company spokesman Mark Hsu said

Taipei Times
Date: Jun 28, 2018
By: Lisa Wang  /  Staff Reporter

Wafer Works Corp (合晶) yesterday said that annual revenue would continue to grow to exceed NT$10 billion (US$328.36 million) next year, bolstered by a significant capacity expansion from its fabs in China and at home.

The capacity expansion comes amid an ongoing scarcity in silicon wafer supply, which has boosted wafer prices and financial performances of wafer suppliers over the past year.

Wafer Works expects the supply crunch to persist this year.

“It is a seller’s market for silicon wafers. Demand has greatly surpassed supply,” company spokesman Mark Hsu (許明哲) told reporters. “Shipments and prices will continue to climb in the third quarter, extending an uptrend over the past [few quarters].”

Hsu declined to say how big the price increase would be.    [FULL  STORY]

Economics minister in Washington for APEC meeting

Radio Taiwan International
Date: 2018-06-26

The economics minister, Shen Jong-chin, has arrived in Washington DC for a working group meeting of the Asia-Pacific Economic Cooperation (APEC).

On Monday, local time, Shen was hosted by the US-Taiwan Business Council, where he discussed energy, trade and intellectual property rights.

On Tuesday, Shen will attend the APEC Energy Ministers-CEO Dialogue on LNG Development and Trade at the invitation of the US Department of Energy. The focus of the meeting will be on the opportunities and challenges of developing liquefied natural gas (LNG) as an energy source.    [FULL  STORY]

Guatemala trade team visits I-Mei factory, hoping for more Taiwan-Guatemala trade tie-ups

The delegation is coming to Taiwan to take part in the four-day international food show to be held in Taipei from June 27

Taiwan News 
Date: 2018/06/26
By: Sophia Yang, Tzuti Huang, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – A Guatemala trade delegation arrived in Taiwan this week

I-Mei Foods Co. Chairman Henry Kao, third from left, was receiving the team at the company’s Taoyuan factory on Tuesday. (By Taiwan News)

and visited a food factory in Taoyuan on Tuesday with the aim to promote bilateral trade between the two countries.

Before inking a Guatemala-Taiwan free trade agreement in 2004, which took effect from Jan. 1, 2008, the two countries already maintained close economic ties. The visiting trade delegation is comprised of local crop growers and agriculture-fisheries companies.

The delegation is coming to Taiwan to participate in the four-day international food show to be held in Taipei from June 27, and visited an I-Mei Food factory the day before the event. The team will be promoting crops such as amaranth seeds rich in Omega 3, and coffee beans grown at higher altitudes.

I-Mei Foods Co. Chairman Henry Kao (高志尚) was receiving the team at the company’s Taoyuan factory on Tuesday, saying that he is looking forward to increased trade and investments between the two countries.     [FULL  STORY]

Taiwan shares end lower but come off early low

Focus Taiwan
Date: 2018/06/26
By: Frances Huang

Taipei, June 26 (CNA) Shares in Taiwan closed moderately lower on Tuesday after recovering from an early low caused by escalating trade tensions between the United States and China, dealers said.

With contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) in the doldrums, the bellwether electronics sector led the downturn, while certain old economy stocks, in particular in the petrochemical sector, posted gains to give some support to the broader market, they said.

The weighted index on the Taiwan Stock Exchange (TWSE) or the Taiex ended down 44.29 points, or 0.41 percent, at 10,742.17, after moving between 10,651.42 and 10,752.99, on turnover of NT$140.70 billion (US$4.63 billion).

The market opened down 55.56 points, or 0.52 percent, in the wake of steep losses in the United States, where the Dow Jones Industrial Average closed down 1.33 percent and the tech-heavy Nasdaq index closed down 2.09 percent overnight, dealers said.
[FULL  STORY]

Motech to close one production line

RELOCATION: About 160 employees are to be reassigned to a solar module production line and provided with training to help them adjust to their new job, the company said

Taipei Times
Date: Jun 27, 2018
By: Lisa Wang  /  Staff reporter

Solar cell maker Motech Industries Inc (茂迪) yesterday said that it is shutting down a solar wafer production line amid a worsening industry slump mainly due to shrinking demand from China.

The change would affect about 160 employees, it said.

China’s new solar policy, which would substantially cut subsidies for solar panel installation and reduce feed-in tariffs, is likely to depress solar demand at a time when the industry is already plagued by oversupply, it said.

A scale-down in solar subsidies would curtail demand by about 40 percent to 31.6 gigawatts in the world’s biggest solar market this year, market researcher TrendForce Corp (集邦科技) forecast.    [FULL  STORY]

Manufacture and service sector sees growth in May: TIER

Radio Taiwan International
Date: 2018-06-25

Taiwan’s manufacturing and service sectors saw minor growth in the month of May,

Taiwan’s manufacturing and service sectors saw minor growth in the month of May, while the construction sector’s continued decline has also slowed. (CNA Photo)

while the construction sector’s continued decline has also slowed. That’s according to the latest figures from the Taiwan Institute of Economic Research (TIER), a local economic think tank.

TIER listed a number of factors that impacted the manufacturing sector. Global factors include the recovering economy of the United States, and positive changes to the European Central Bank’s current policies. Domestically, the institute said the rising export trade volume, especially in electronic components, brought a positive outlook to local manufacturers.

While the service sector benefited from the strong performance of the stock market, TIER said the construction sector still suffered from negative factors like the rising cost of construction materials.

A new pension structure for retired military personnel, government workers and teachers will be adopted in Taiwan, starting in July. Asked about the potential effect, TIER official Gordon Sun said the changes will have little impact on domestic consumption.    [SOURCE]