Business and Finance

Formosa Plastics expects upbeat Q4

OPTIMISTIC:As Asian manufacturers have dropping inventories of ethylene vinyl acetate, Formosa Plastics Corp chairman Jason Lin is confident the company can fill critical demand

Taipei Times
Date:  Nov 07, 2017
By: Kuo Chia-erh  /  Staff reporter

Formosa Plastics Corp (FPC, 台塑), the nation’s largest producer of polyvinyl chloride, yesterday gave an optimistic business outlook for this quarter, as the global petrochemicals market remains undersupplied.

Revenue this quarter is expected to surpass last quarter’s NT$53.88 billion (US$1.78 billion), as product prices are forecast to hover at relatively high levels due to unresolved supply constraints, FPC chairman and president Jason Lin (林健男) told an earnings conference in Taipei, referring to sodium hydroxide and methyl methacrylate.

Global prices of ethylene vinyl acetate are also expected to remain high, as most Chinese and South Korean manufacturers have seen their inventories drop to below normal levels, indicating that supply is in a critical peak season, Lin told reporters.

FPC yesterday reported that sales last month dropped 5.8 percent month-on-month to NT$16.58 billion from NT$17.6 billion because of fewer working days in the Chinese market, but it represented annual growth of 9.6 percent from NT$15.13 billion, as prices climbed amid short supply in China.    [FULL  STORY]

Largan shares fall despite higher October sales

The China Post
Date: November 6, 2017
By: Wei Shu and Frances Huang

TAIPEI (CNA) – Shares of Largan Precision Co. (大立光), a smartphone camera lens

In this undated file photo, a man looks at an electronic stock board of a securities firm in Taipei. Shares of Largan Precision Co., a smartphone camera lens supplier to Apple Inc., came under pressure Monday despite its positive sales growth report for October. (CNA)

supplier to Apple Inc., came under pressure Monday despite its positive sales growth report for October, dealers said.

The company on Sunday reported a 3 percent monthly increase in October sales, far short of the market estimate of 10 percent growth, and gave a cautious forecast for its November revenue, which prompted investors to unload the stock, dealers said.

As of 12:03 p.m. Monday, shares of Largan had fallen 1.50 percent to NT$5,895.00 (US$195) on the Taiwan Stock Exchange, while the weighted index was down 0.08 percent at 10,792.36 points.

“With Largan shares moving closer to the NT$6,000 mark, many investors are being cautious and are focusing at the moment on the lower than expected sales growth,” MasterLink Securities analyst Tom Tang said.    [FULL  STORY]

Qualcomm’s halt of deal with ITRI could hurt Taiwan’s 5G development

Focus Taiwan
Date: 2017/11/05
By: Liao Yu-yang and Evelyn Kao 

Taipei, Nov. 5 (CNA) Qualcomm Inc.’s suspension of its 5G technology development collaboration with Taiwan’s Industrial Technology Research Institute (ITRI) will likely affect Taiwan’s 5G technology development, Technology Minister Chen Liang-gee (陳良基) said Sunday.

Qualcomm made the decision to halt the deal with ITRI shortly after the Taiwanese Fair Trade Commission imposed a NT$23.4 billion (US$793 million) fine on the firm for antitrust regulation violations on Oct. 11.

Noting that Taiwan maintains competitive and cooperative ties with the U.S.-based smartphone chip designer, Chen said it is difficult to say whether it is advantageous or disadvantageous to cooperate with Qualcomm.    [FULL  STORY]

CPC to raise fuel prices for coming week

Focus Taiwan
Date: 2017/11/05
By: Liao Yu-yang and William Yen

Taipei, Nov. 5 (CNA) State-owned oil refiner CPC Corp., Taiwan (中油) announced

CNA file photo

Sunday that it will increase domestic gasoline and diesel prices by NT$0.5 (US$0.017) and NT$0.6, respectively, per liter, starting on Monday.

After the adjustment, prices at CPC gas stations nationwide will be NT$23.6 per liter for super diesel, NT$25.8 per liter for 92 octane unleaded, NT$27.3 per liter for 95 unleaded and NT$29.3 per liter for 98 unleaded, the company said.

With the latest hikes, gas prices are at a new high of this year.

CPC said that international oil prices increased over the past week due to major oil exporters Saudi Arabia and Russia lending support to an extension of an output reduction agreement between the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers to the end of 2018.    [FULL  STORY]

TSMC to give out NT$456m in bonuses

INVESTMENTS PAYING OFF:TSMC chairman Morris Chang announced that its 38,000 employees would get bonuses, as research and development continue to reap dividends

Taipei Times
Date: Nov 06, 2017
By: Staff writer, with CNA

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, on Saturday said it would distribute about NT$456 million (US$15.11 million) in bonuses to its employees by the end of this month.

At the company’s annual sports day in Hsinchu, where TSMC is headquartered, chairman Morris Chang (張忠謀) announced that the company’s 38,000 employees who were formally employed by the company by May 31 would each receive a NT$12,000 bonus.

TSMC has traditionally announced a cash gift to employees on its annual sports day to supplement year-end and quarterly bonuses and to show gratitude to its employees for their contributions. Last year, TSMC announced on the same occasion that it would dole out more than NT$400 million in bonuses to about 36,000 employees.

At Saturday’s sports meet, which followed the company’s celebration of its 30th anniversary last month, the 86-year-old Chang said he was excited to see so many energetic TSMC employees at the event, giving him faith that the company and its employees would continue to create miracles.    [FULL  STORY]

Cabinet approves new chairman for CPC Corp.: MOEA

The China Post
Date: November 5, 2017
By: Huang Ya-chuan and William Yen

TAIPEI (CNA) — The Cabinet has approved a new chairman for state-run oil company

In this Sept. 17, 2017, file photo, Tai Chein, then-president of Southern Taiwan University of Science and Technology, attends an unknown event of his university. According to the Ministry of Economic Affairs, the government has also approved him as the new chairman of state-run oil company CPC Corp. Taiwan. (NOWnews)

CPC Corp. Taiwan (中油), the Ministry of Economic Affairs (MOEA) said in a statement Friday.

The MOEA said 68-year-old Tai Chein (戴謙), president of Southern Taiwan University of Science and Technology, will assume the post after the company holds a board meeting on Monday.

Economic Affairs Minister Shen Jong-chin (沈榮津) said Tai is no stranger to the industry as he has previously served as director of the Southern Taiwan Science Park Administration and vice chairman of the National Science Council.

Tai has received many important awards in the past, including a National Top Ten Outstanding Young People Award in 1985, an Order of Agricultural Merit from France in 2006, and an award for being among the top ten outstanding private university presidents in 2017.    [FULL  STORY]

TSMC founder Morris Chang bullish about near future for Taiwan chipmaker

Samsung once tried to recruit him: Chang

Taiwan News 
Date: 2017/11/04
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Taiwan Semiconductor Manufacturing Co. (台積電), the world’s largest contract chipmaker, will see its revenue grow by between 5 and 10 percent per years over the next three years, founder and chairman Morris Chang (張忠謀) said Saturday, adding that South Korean rival Samsung once sought to recruit him.

Chang, 86, who is planning to retire next June, was speaking at his final annual sports event for his employees in Hsinchu County, where he announced that 38,000 employees would receive a bonus of NT$12,000 (US$397) each later this month.

Pointing out the hazards of exchange rates, the tycoon said that for 2017, the rise in revenue as measured in U.S. dollars amounted to 9 percent, but if changed into New Taiwan dollars, the figure was only 4 percent.

Chang said he was standing by a prediction he made two years ago, that for each year during five years the increase in revenue in U.S. dollars would fall somewhere between 5 and 10 percent. Over the two years already gone, the figure was 10 percent, showing he had been right, even though he had no hold over the exchange rates, he said.
[FULL  STORY]

Housing transactions in 6 major cities down over 10% in October

Focus Taiwan
Date: 2017/11/04
By: Wei Shu and Frances Huang

Taipei, Nov. 4 (CNA) Transactions of residential and commercial property in Taiwan’s six major cities fell more than 10 percent in October from a month earlier as Ghost Month still weighed down the market, according to government statistics.

In October, transactions of homes, shops and offices in the six largest cities — Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung — fell 12 percent from a month earlier to 15,154 units.

The October figure was also down about 3 percent from a year earlier, the data showed.

Consumers in Taiwan tend not to buy big ticket items like homes and cars during Ghost Month, which fell this year between Aug. 22 and Sept. 20.    [FULL  STORY]

Broadcom eyes deal for US chip rival

POSSIBLE TAKEOVER BID:Broadcom considers acquiring Qualcomm, which faces a US$770 million fine in Taiwan, similar fines elsewhere and a patent battle with Apple

Taipei Times
Date: Nov 05, 2017
By: AFP, SAN FRANCISCO

Shares of Qualcomm Inc jumped nearly 13 percent on Friday after unconfirmed media reports said rival computer chip giant Broadcom Ltd might make an unsolicited takeover bid.

Broadcom is considering an acquisition plan, which it could put into motion as soon as this weekend, the Wall Street Journal reported, citing an unnamed source it said was familiar with the matter.

Shares in Qualcomm closed up 12.71 percent to US$61.81 on the NASDAQ exchange, valuing the company at US$91 billion. That could make the deal the biggest ever in the technology sector.

Broadcom shares also gained ground on the NASDAQ, rising 5.45 percent to US$273.63, valuing the company at more than US$116 billion, in a possible sign that the market saw merit in the acquisition.    [FULL  STORY]

Ex-minister without portfolio takes over as TWSE chairman

The China Post
Date: November 4, 2017
By: Ku Chuan and Elizabeth Hsu

TAIPEI (CNA) — Hsu Jan-yau (許璋瑤) has stepped down as a minister without portfolio

Taiwan Stock Exchange Chairman Hsu Jan-yau reacts in a speech on Nov. 3, 2017. Hsu is taking over as chairman o from acting TWSE Chairman and President Lee Chi-hsien, who was asked to head the board of the government-controlled corporation temporarily after then-Chairman Shih Jun-ji (施俊吉) was named by Lai to serve as vice premier in September. (CNA)

to head the Taiwan Stock Exchange Corp. (TWSE) as chairman, Cabinet spokesman Hsu Kuo-yung (徐國勇) said Friday.

Hsu Jan-yau has also quit his largely ceremonial post as governor of Taiwan Province, the Cabinet spokesman said, adding that the openings left behind by Hsu will be assumed by acting Yilan County Magistrate Wu Ze-cheng (吳澤成).

The 66-year-old Hsu previously served as head of the Directorate-General of Budget, Accounting and Statistics from 2004 to 2008 when Chen Shui-bian (陳水扁) of the Democratic Progressive Party (DPP) was president of the country.

He was handpicked by Lin Chuan (林全) to serve as a minister without portfolio in charge of accounting, statistics and financial affairs in his Cabinet when a new DPP government took office in May 2016.
[FULL  STORY]