Focus Taiwan
Date: 2018/06/25
By: Tien Yu-pin and Frances Huang 

Taipei, June 25 (CNA) Foreign institutional investors registered a net sell of almost NT$48 billion (US$1.48 billion)-worth of equities on the local main board last week, when the benchmark weighted index fell 1.70 percent, the Taiwan Stock Exchange (TWSE) said Monday.

Between Jan. 1 and June 22, foreign institutional investors’ net sell of equities stood at NT$229.35 billion, TWSE data indicates.    [FULL  STORY]

BEATING EXPECTATIONS: New smartphone launches have fueled demand for silicon wafers and DRAM chips, with IC demand rising 17.56 percent on an annual basis

Taipei Times
Date: Jun 26, 2018
By: Kuo Chia-erh  /  Staff reporter

The nation’s industrial production index hit 111.1 last month, an annual increase of 7.05 percent, beating the government’s previous forecast of 3 percent growth, propelled by growing demand for consumer electronics and communication products, the Ministry of Economic Affairs said yesterday.

The manufacturing production index, which accounts for more than 90 percent of Taiwan’s industrial production, expanded the fastest of the four sub-sectors at 7.24 percent, the ministry said.

The growth was largely due production of electronic components, especially silicon wafers and DRAM chips.

“Though last month is usually the slow season for electronics components suppliers, demand turned out to be better than our expectations this year on the back of new smartphone launches,” Department of Statistics Deputy Director-General Wang Shu-chuan (王淑娟) told a news conference.    [FULL  STORY]

NEW UPTAKE: An important cause of falling component availability and rising prices is demand from the fast-developing automotive electronics sector, CEO Warren Chen said

Taipei Times
Date: Jun 25, 2018
By: Ted Chen  /  Staff reporter

Electronics supplier Lite-On Technology Corp (光寶科技) gave a dim outlook for the second half of this year, saying a persistent shortage of key components is likely to dampen demand.

While sales in the second half are expected to exceed takings in the first six months, it could take up to two years for the global technology sector to resolve lingering shortages in semiconductor materials and passive modules, Lite-On chief executive Warren Chen (陳廣中) told shareholders at the company’s annual general meeting on Friday last week.

The shortages are caused by growing demand for automotive electronics, Chen said, adding that end-user product pricing would only go up as businesses pass higher component costs on to consumers and drive down spending.

It would also be more difficult for Chinese manufacturers to make up the shortfall as Beijing tightens environmental standards, he said.    [FULL  STORY]

Focus Taiwann
Date: 2018/06/23
By: Tien Yu-pin and Frances Huang

Taipei, June 23 (CNA) Cathay Financial Holding Co. has left its forecast for Taiwan’s 2018 gross domestic product (GDP) growth unchanged at 2.3 percent, expressing caution due to growing trade tensions between the United States and China.

However, the Taiwan company said it was maintaining its 2.3 percent growth forecast as the domestic economy was still on a path to stable recovery.

In March, Cathay Financial raised its estimate for Taiwan’s 2018 GDP growth by 0.3 percentage points to 2.3 percent, citing strong global demand, but its forecast was below that of the government’s.

In late May, the Directorate General of Budget, Accounting and Statistics (DGBAS) upgraded its growth forecast for Taiwan’s 2018 GDP by 0.18 percentage points to 2.60 percent.    [FULL  STORY]

Taipei Times
Date: Jun 24, 2018
By: Staff writer, with CNA and Bloomberg

Local shares on Friday ended lower after a plunge on Wall Street overnight, but still remained above the market’s six-month moving average.

The TAIEX on Friday opened at 10,901.25, hitting a high of 10,914.83 and a low of 10,828.86 before closing down 41.79 points, or 0.38 percent, at 10,899.28, falling 1.7 percent from 11,087.47 on June 15.

Losers outnumbered gainers 566 to 240, while 114 stocks remained unchanged.

Affected by a 0.8 percent slide in the Dow Jones Industrial Average on Thursday, the weighted index sank as low as 10,828.86 — the lowest the market has been this month — at one point during the session.

However, led by gains in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in the second half of the session, buying in old economy shares also emerged, helping push the TAIEX above the six-month moving average of 10,880 by the end of the session.    [FULL  STORY]

Radio Taiwan International
Date: 2018-06-22

The Bureau of Foreign Trade said Friday it is still trying to convince the United States to exempt Taiwan from steel and aluminum tariffs.

In early March, President Trump announced a 25% tariff on steel and a 10% tariff on aluminum imports to the US. Taiwan’s attempt to seek exemption from the tariffs has not yet yielded any result.

Washington has exempted 42 types of steel products from the tariff. These products are mostly from China, Japan, Germany, Sweden and Belgium.

Lee Guann-jyh, spokesperson for the foreign trade bureau, said Friday that they are still seeking an exemption for Taiwan. The bureau also encourages local companies to apply for exemption through available mechanisms, such as the US supply chain.
[SOURCE]