Business and Finance

Tsai’s economic policies have borne fruit: Lai

Radio Taiwan International
Date: 2018-01-25

Premier William Lai says Taiwan’s economy has shown signs of growth, vindicating

Premier William Lai is featured in this CNA file photo.

President Tsai Ing-wen’s policies.

At a Cabinet meeting on Thursday, Lai said Taiwan’s GDP grew by 2.6% last year. That was higher than the figures for 2015 and 2016. He said total export volume stood in at US$317 billion and showed the biggest growth in seven years. Lai said stock market trade reached a 28-year high, while the 3.76% unemployment rate marked a 17-year low.

The premier said these figures show President Tsai’s policies are taking the nation in the right direction. Lai urged ministers to come up with strategies to tackle ongoing issues, such as low wages.
[FULL  STORY]

Taiwan seeks Japan’s support for joining CPTPP despite Fukushima food dispute

The country is hoping to take part in the second round of negotiations which is likely to take place later this year or early next year 

Taiwan News 
Date: 2018/01/25
By: Teng Pei-ju, Taiwan News, Staff Reporter

TAIPEI (Taiwan News) — Taiwan’s Ministry of Foreign Affairs (MOFA) congratulated the 11 signatory countries for concluding the negotiations of an Asia-Pacific trade pact on

Fan Chen-kuo, deputy secretary-general of MOFA’s Taiwan-Japan Relations Association (Teng Pei-ju／Taiwan News)

January 22, and said the country had expressed strong interest in taking part in the second round of negotiations to Japan, the pact’s chief negotiator.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will be signed in March in Chile without the United States, which withdrew from the negotiations of the pact previously known as the TPP a year ago under the Trump administration.

Japan being the leading force of the pact, its support for Taiwan to join the CPTPP is obviously important, but whether it will use the issue to strike a bargain with Taiwan on the lifting of restrictions on imports of Fukushima foods, which Taiwan has so far resisted, remains a question.

Fan Chen-kuo (范振國), deputy secretary-general of MOFA’s Taiwan-Japan Relations Association, said on Thursday “the government would not rule out the possibility even though it had not received any pressure as such from Japan for the moment.”
[FULL  STORY]

U.S. dollar closes lower on Taipei forex market

Focus Taiwan
Date: 2018/01/25
By: Y.F. Low
Taipei, Jan. 25 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.233 to close at NT$29.069.

Turnover totaled US$1.455 billion during the trading session.

The greenback opened at NT$29.200, and moved between NT$29.035 and NT$29.249 before the close.     [SOURCE]

GDP to rise on global uptick: TIER

UNSTABLE PARTNERS? The think tank’s forecasting center said the possibility of a trade war between China and the US following its imposition of duties posed a risk to Taiwan

Taipei Times
Date: Jan 26, 2018
By: Staff writer, with CNA

The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its economic growth forecast for the nation this year to 2.34 percent, up slightly from its November last year estimate of 2.3 percent.

Many international institutions, including the World Bank, Global Insight and the IMF, expect global economic growth this year to be better than last year, which should allow Taiwan to continue its growth momentum, Gordon Sun (孫明德), director of the institute’s Economic Forecasting Center, said at a news conference in Taipei.

However, there are still some uncertain factors that could affect economic development at home and abroad, including new policies rolled out by the US and Chinese governments, major economies’ monetary policies, and volatile crude oil and raw material prices, Sun said.

The US administration’s monetary easing and tax cuts are likely to attract investments and cash flow to the US, while China’s crackdown on pollution by intensifying environmental checks might drive up petrochemical prices and business operating costs, he said.    [FULL  STORY]

Neo Solar mulls US plant to cope with new levy

Taipei Times
Date: Jan 25, 2018
By: Lisa Wang  /  Staff reporter

Solar cell maker Neo Solar Power Energy Corp (新日光能源) yesterday said it is considering building a new solar module plant in the US to cope with new US tariffs on solar cells and modules.

US President Donald Trump on Tuesday approved recommendations from the US International Trade Commission to impose safeguard tariffs of up to 30 percent on solar cells and modules, and up to 50 percent for washers, citing the damage such imports could cause US manufacturers.

“We did think about building our solar module capacity, including constructing a new factory in the US, which is part of our restructuring efforts following a three-way merger,” Neo Solar chairman Sam Hong (洪傳獻) told a media briefing. “We are now seriously evaluating this option.”

“But the investment will be relatively small, at between NT$300 million and NT$500 million [US$10.2 million and US$17.1 million], with most of our new investments remaining in Taiwan,” Hong said.    [FULL  STORY]

New ASE-Siliconware firm plans listing in April

New holding company to be formed by Advanced Semiconductor Engineering Inc. and Siliconware Precision Industries Co. to launch in April

Taiwan News  
Date: 2018/01/25
By:  Central News Agency

Taipei, Jan. 24 — A new holding company to be formed by Advanced Semiconductor

ASE Group. (By Central News Agency)

Engineering Inc. (ASE) and Siliconware Precision Industries Co. (SPIL), the two largest integrated circuit packaging and testing services providers in Taiwan, is expected to launch a stock listing at the end of April.

According to a report to shareholders by SPIL for a special shareholder meeting scheduled for mid-February, ASE will obtain all SPIL shares through a share and cash swap for the formation of a new holding company.

ASE will use one common share in exchange for 0.5 shares of the new company, while SPIL will receive NT$51.2 for each of its shares from the new company.

The new holding firm, which will be called ASE Industrial Holding Co., will list its shares April 30 on the local main board and the tech-heavy NASDAQ in the United States.
[FULL  STORY]

Qualcomm secures FTC approval to pay fine in installments

Focus Taiwan
Date: 2018/01/24
By: Tsai Yi-chu and Frances Huang

Taipei, Jan. 24 (CNA) Qualcomm Inc., a U.S.-based smartphone chip designer, has

Image taken from Qualcomm Inc.’s Facebook page

obtained approval from Taiwan’s Fair Trade Commission (FTC) to pay a massive fine in installments, the FTC said Wednesday.

Qualcomm filed the application on Monday, its deadline for paying the NT$23 billion (US$784 million) fine for violation of Taiwan’s antitrust regulations.

FTC Vice Chairman Perng Shaw-jiin (彭紹瑾) told the press Wednesday that the FTC gave approval for Qualcomm to pay the fine in 60 monthly installments, starting with a payment of about NT$390 million by the end of January.

On Oct. 11, the FTC imposed a fine of NT$23.4 billion on Qualcomm after a two-year investigation into allegations of anti-trust violations relating to the company’s chip technology.    [FULL  STORY]

Phone, 28nm chips drag UMC profit

PICKUP? The chipmaker is hoping for a rebound in 28nm chip demand this quarter, as it continues efforts to secure new design opportunities to rebuild sales momentum

Taipei Times
Date: Jan 25, 2018
By: Lisa Wang  /  Staff reporter

United Microelectronics Corp (UMC, 聯電), the world’s No. 3 contract chipmaker, yesterday reported its weakest net profit in seven quarters due to sluggish demand for mobile phone chips and its advanced 28-nanometer (nm) chips.

Net profit last quarter plunged 30.5 percent to NT$1.77 billion (US$60.41 million), compared with NT$2.55 billion in the same period of 2016, the company’s financial statement showed.

That also represented a quarterly contraction of 50 percent from NT$3.47 billion, due to a significant decline in investment gains, the statement said.

UMC expects revenue to be little changed this quarter from last quarter’s NT$36.63 billion as robust overall demand should offset continuing weakness in 28-nanometer chips.    [FULL  STORY]

Innolux keeps No. 3 ranking: TrendForce

Taipei Times
Date: Jan 24, 2018
By: Lisa Wang  /  Staff reporter

Innolux Corp (群創) last year safeguarded its ranking as the world’s third-largest LCD TV panel supplier after a fall in panel prices helped stimulate demand and digest excessive inventory in the second half of the year, market researcher TrendForce Corp (集邦科技) said yesterday.

Improving demand helped offset stagnation in shipment growth as Innolux struggled to improve the yield rate for its new 8.6G production line in the first half of last year, the Taipei-based research company said in a report.

Innolux’s TV clients were cautious about placing orders after the panel manufacturer last year restarted its TV set assembly business to minimize operational volatility, the report said.

Miaoli County-based Innolux shipped 41.8 million flat panels used in TVs, inching up 0.2 percent from 41.73 million units shipped in 2016, TrendForce data showed.
[FULL  STORY]

TAITRA to help 50 Taiwanese companies use Amazon

Program will provide assistance to 50 Taiwanese companies

Taiwan News 
Date: 2018/01/23
By: Matthew Strong, Taiwan News, Staff Writer

TAITRA and Chunghwa Post will help 50 Taiwanese companies sell products on Amazon. (By Associated Press)
TAIPEI (Taiwan News) – The Taiwan External Trade Development Council (TAITRA, 外貿協會) has worked out a deal with Amazon and Chunghwa Post which will allow 50 Taiwanese companies to sell their products on an international scale through the American online platform.

TAITRA will pay the online fees and mailing costs for a while for 50 companies showing an interest in using the storage and packaging services of Fulfillment by Amazon (FBA).

The formula would allow Taiwanese manufacturers to expand their reach overseas while shortening the time a product needed to arrive at its destination, the Central News Agency reported.    [FULL  STORY]