Business and Finance

Value of US deals in China plummets

‘SYSTEMIC INEQUITIES’:The new norm for China and the US is to be at odds on trade issues, including the steel industry, Hogan Lovells partner Roy Zou said

Taipei Times
Date: Jul 31, 2017
By: Reuters, HONG KONG

US corporate acquisitions in China collapsed to their lowest level for 14 years in the first half of this year, as trade tensions between the two countries and uncertainty about Chinese government regulations took a toll on dealmaking.

The value of mergers and acquisitions involving US companies in China dropped 32 percent to US$523 million in the six months to June 30 from US$771 million in the same period last year, and were down 87 percent from US$4 billion in the first six months of 2015, according to Thomson Reuters data.

Bankers and lawyers involved in dealmaking say that increasing signs of trade friction between Washington and Beijing are acting as a deterrent.

The tensions were reflected at a meeting earlier this month when officials from the two countries failed to agree on steps to reduce the US trade deficit with China.
[FULL  STORY]

Taiwanese company to be world’s largest jeans maker after merger

Focus Taiwan
Date: 2017/07/30
By: Wei Shu and Lee Hsin-Yin

Taipei, July 30 (CNA) Taiwanese clothing manufacturer Roo Hsing Co. Ltd. said Sunday

Picture taken from Pixabay

that it will become the world’s largest jeans provider from Aug. 1 after a merger with China-based JD United Holdings, Ltd.

Jeans production at JD United Holdings is four times that of Roo Hsing, which will bring the annual jeans output to 84 million pairs, or 7 percent of the world’s supply, said Roo Hsing Vice President Hsu Chung-jung (徐仲榮).

Roo Hsing’s board agreed in 2015 to buy out JD United Holdings for US$388 million, which was raised in full on June 20 this year.

The takeover is expected to turn the Taiwan-headquartered jeans manufacturer into a multinational corporation, he said.    [FULL  STORY]

Local refiners raise fuel prices as US inventories swell

Taipei Times
Date: Jul 31, 2017
By: Staff writer

State-owned refiner CPC Corp, Taiwan (CPC, 台灣中油) yesterday announced that it is raising its domestic gasoline and diesel prices by NT$0.2 per liter today.

The average cost of its crude oil rose to US$48.85 per barrel this week from NT$47.89 a week earlier, reflecting concerns about a steady increase in US crude oil inventories and lower investment by the largest US independent refiners this year, which might prompt other shale oil producers to follow suit, CPC said.

Formosa Petrochemical Corp (台塑石化) announced similar price increases on Saturday.    [FULL  STORY]

Typhoon Nesat causes agricultural losses exceeding NT$60 million

Agricultural damages caused by Typhoon Nesat are estimated to be NT$60.19 million (US$2.03 million), according to the Council of Agriculture (COA).

Taiwan News
Date: 2017/07/30
By: Taiwan News

TAIPEI (Taiwan News)–Typhoon Nesat agricultural damages are estimated to be

Straight days of heavy rain have caused severe damages to crops causing steep price hikes for leafy greens in traditional markets. (By Central News Agency)

NT$60.19 million (US$2.03 million, according to the Council of Agriculture (COA).

The heaviest losses are registered in Yilan County, a total NT$41.17 million (US$1,352,000), followed by Pingtung County, which reported agricultural losses of NT$18.46 million (US$593,800), and Taoyuan at NT$570,000 (US$18000), said the COA.

Guava farmers suffered the biggest loss, with a total of NT$10.92 million. Crops such as pomelos, green onions, bamboo shoots and bananas were also affected.

The livestock sector suffered NT$12.98 million in losses, and farm equipment reported NT$440,000 in damage, said the COA.    [FULL  STORY]

Taiwan relies heavily on tech from US

Taiwan imports almost 80 percent of technology costs from the United States: MOEA

Taiwan News
Date: 2017/07/26
By: Taiwan News Staff

TAIPEI (Taiwan News)–Almost 80 percent of Taiwan’s imported technology costs come from the United States, according to Ministry of Economic Affairs (MOEA).

In Taiwan’s latest report on imported technology released by MOEA costs show NT$160.1 billion (US$5.28 billion) in 2015, with the U.S. accounting for NT$124.3 billion. Imported technology costs include expenses like licensing fees, technology aids, royalty payments, and consulting fees.

In second place is Japan, though imported technology costs for 2015 fell 1.9 percent from 2014, when costs rose 7.9 percent from a year earlier, the MOEA added.
[FULL  STORY]

President hopeful Siemens will set up R&D center in Taiwan

Focus Taiwan
Date: 2017/07/26
By: Lu Hsin-hui and Frances Huang

Taipei, July 26 (CNA) President Tsai Ing-wen (蔡英文) expressed hope Wednesday that

President Tsai Ing-wen (蔡英文) receives a Siemens delegation. (Photo courtesy of the Presidential Office)

Germany-based industrial giant Siemens AG will set up a smart machinery research and development (R&D) center in Taiwan to forge closer ties with the local machinery manufacturing sector.

Receiving a Siemens delegation led by Cedrik Neike, a member of the managing board of the German firm, Tsai said that the local machinery industry has been working with the German firm on smart manufacturing development and that a move by the company to set up an R&D center in Taiwan would strengthen that cooperation.

Tsai said that Taiwan’s industrial sector has laid a good foundation in information and communication technology development, and she encouraged Siemens to utilize Taiwan’s advantages by opening a smart machinery hub here.    [FULL  STORY]

UMC to slash its spending

OTHER PURSUITS:UMC is to refocus on technology for the Internet of Things and emerging memory chips, which do not require advanced technologies

Taipei Times
Date: Jul 27, 2017
By: Lisa Wang / Staff reporter

United Microelectronics Corp (UMC, 聯電), the world’s No. 2 contract chipmaker, yesterday axed this year’s capital spending by 15 percent as it is taking a more realistic approach to boost equity returns rather than splurging on the most advanced technologies.

UMC plans to spend US$1.7 billion on new equipment this year, down from its earlier estimate of US$2 billion.

Although the chipmaker said the reduction would apply to all nodes, it is seen as an early indicator that the firm is abandoning its long-term pursuit of making ever smaller and advanced chips.

The strategy adjustment was announced by the company’s new copresident Jason Wang (王石) during his first appearance on the chipmaker’s quarterly investors’ teleconference yesterday.    [FULL  STORY]

Trump looks set to confirm that Taiwan’s Hon Hai will set up a huge factory in Wisconsin

The China Post
Date: July 26, 2017
By: The China Post

TAIPEI, Taiwan — U.S. President Donald Trump is expected to announce Wednesday that Taiwan tech giant Hon Hai will set up a massive manufacturing facility in Wisconsin, which would mark its first factory in the U.S.

The White House has put an ambiguous “jobs announcement” on its Wednesday schedule for Trump, following rumors that he would announce the new plant’s location soon.

Hon Hai, also known as Foxconn, is the world’s largest contract electronics manufacturer. Headquartered in New Taipei, it’s best known for manufacturing Apple devices.

Trump has previously said he hoped to bring Apple manufacturing to the U.S. to create jobs there as part of his “America first” agenda. While visiting Wisconsin in June, Trump hinted at Hon Hai choosing the state for the factory, saying that Wisconsin Governor Scott Walker would get “a very happy surprise.”    [FULL  STORY]

No budget limit for anti-drug actions: Premier

Radio Taiwan International
Date: 2017-07-25

Premier Lin Chuan said Tuesday that there is no upper limit on spending for efforts to

Premier Lin Chuan (left) greets a drug-sniffing dog at an anti-drug event Tuesday. (CNA)

combat illegal drug use. Lin was speaking at an award ceremony commending individuals who successfully cracked illegal drug rings or cases.

Lin said he has seen progress in anti-drug strategies suggested by the justice ministry. But there has also been an increase in drug seizures by the Coast Guard Administration.

Lin said the National Police Agency and other units are seeking out local sources for the production of illegal drugs. He said the government is taking the matter very seriously.

Lin said the government has no budget limit on any anti-drug actions already deemed effective.    [FULL  STORY]

Taiwan talent to take center stage at World Congress on Information Technology

Taiwan News
Date: 2017/07/25
By: Taiwan Today,Agencies

MOEA Minister Lee Chih-kung joins other government officials and industry

Taiwan talent to take center stage at World Congress on Information Technology

representatives in giving their thumbs-up to the upcoming World Congress on Information Technology

The 2017 World Congress on Information Technology, set to take place Sept. 10-13 in Taipei City, will provide a platform for the country’s young entrepreneurs to flex their innovative muscles and network with global industry heavyweights, according to the Ministry of Economic Affairs July 25.

Speaking at a news conference in Taipei, MOEA Minister Lee Chih-kung said the event will offer emerging Taiwan talents the opportunity to foster connections with leading figures from across the globe, furthering the government’s efforts to establish the nation as a hub of tech innovation in Asia. It will also promote Taiwan’s credentials as a leading supplier of cutting-edge applications systems and services, he added.
[FULL  STORY]