Business and Finance

The age of a mighty Taiwan dollar

The China Post
Date: May 20, 2017
By: The China Post

TAIPEI, Taiwan — A public hearing scheduled for 9:30 a.m. EST on May 18 at the

(Business Today)

U.S. Department of Commerce in Washington could shape the fate of 16 nations — including Taiwan.

By the end of June, information gathered at the public hearing will be submitted to the “Omnibus Report on Significant Trade Deficits.”

The public hearing and the report come after U.S. President Donald Trump ordered an investigation into economies with a hefty trade surplus with the U.S.

The 16 listed countries are to be examined for potential “trade abuse” and could be subject to punitive measures if deemed to have taken deliberate measures, including currency manipulation, that may have contributed to the U.S.’s burgeoning trade deficit.    [FULL  STORY]

Formosa Petrochemical announces fuel price hike for next week

Focus Taiwan
Date: 2017/05/20
By: Wei Shu and Frances Huang

Taipei, May 20 (CNA) Formosa Petrochemical Corp. (台塑石化), a privately owned

CNA file photo

fuel supplier, said Saturday it will raise its domestic gasoline and diesel prices for next week after international crude prices hit a one-month high this week.

Rising optimism about an extension of an oil output cut deal sent international crude oil prices higher, leading Formosa Petrochemical to raise gasoline prices by NT$0.5 (US$0.017) per liter and diesel prices by NT$0.6 per liter, effective 1 a.m. Monday.

After the price hike, prices at Formosa Petrochemical gas stations islandwide will be NT$21.2 per liter for super diesel, NT$23.9 per liter for 92 octane unleaded, NT$25.3 per liter for 95 unleaded and NT$27.4 per liter for 98 unleaded, the fuel supplier said.    [FULL  STORY]

Taiwan expected to post export order growth for 9th straight month

The China Post
Date: May 20, 2017
By: CNA

TAIPEI, Taiwan — Taiwan is expected to report a year-on-year increase in export orders for the ninth consecutive month in April because of solid global demand for high-tech gadgets, the Ministry of Economic Affairs (MOEA) said Saturday.

Export orders likely grew at a double-digit pace in April because of a relatively low base of comparison last year after a more than 12 percent year-on-year increase in March, the ministry told the CNA.

The MOEA will release the April export order data on Monday.

Lin Li-chen (林麗貞), director of the MOEA’s Department of Statistics, estimated that the value of Taiwan’s export orders in April rose 16.3-19.3 percent from a year earlier to between US$38.5 billion and US$39.5 billion.    [FULL  STORY]

Too bad Nvidia is not listed on Taiwan bourse: financial expert

Taiwan investors lament Nvidia’s decision to list on U.S. bourse instead

Taiwan News
Date: 2017/05/19
By: Judy Lin, Taiwan News, Staff Writer

TAIPEI (Taiwan News)—When people think about top performing Taiwanese

Nvidia CEO and founder Jensen Huang at Computex 2016.(By Central News Agency)

enterprises most recognize Apple key assembler Foxconn also known as Hon Hai Precision Industry in its home country, but few know that graphic chip processor maker Nvidia that has transitioned successfully into the field of artificial intelligence (AI) is founded by a Taiwanese as well.

Founded by Jensen Huang (黃仁勳), Chris Malachowsky and Curtis Priem in 1993, Nvidia’s market value of US$81.7 billion has overtaken Foxconn’s US$30 billion, and would have been the second biggest enterprise in Taiwan in terms of value if it had been listed on the local bourse, said Wealth Magazine Chairman Hsieh Chin-ho (謝金河).    [FULL  STORY]

Q1 manufacturing output growth hits 6-year high

Focus Taiwan
Date: 2017/05/19
By: Huang Ya-chuan and Frances Huang

Taipei, May 19 (CNA) The year-on-year growth in output of the local manufacturing sector for the first quarter of this year hit a six-year high on the back of a strong showing in the electronic component industry, particularly in the semiconductor and flat panel sectors, the Ministry of Economic Affairs (MOEA) said Friday.

The MOEA said that the production value of the manufacturing sector for the January-March period totaled NT$3.17 trillion (US$105 billion), up 11.35 percent from a year earlier, the highest increase since the first quarter of 2011, when the growth reached 14.53 percent.

Due to Taiwan’s competitive semiconductor industry in the global market, as well as solid global demand for flat screens, the output of the local electronic component sector, which accounted for almost 30 percent of the manufacturing industry’s total, gained 10.26 percent from a year earlier to NT$890.5 billion in the first quarter, the MOEA said.    [FULL  STORY]

Investors cheer best Asian stock market

APPRECIATION:The NT dollar is one of the world’s top-performing currencies, but its growing strength threatens to erode the export-driven economy’s competitiveness

Taipei Times
Date: May 20, 2017
By: Bloomberg

One year into President Tsai Ing-wen’s (蔡英文) rule, investors are tallying up their winnings.

The nation’s benchmark stock index has surged 33 percent in US dollar terms since Tsai’s inauguration, the best performance among Asian peers.

Foreign funds in particular have been fans: They have pumped a net US$16.5 billion into Taiwanese equities in the past 12 months, the most in the region — helping send the New Taiwan dollar to highs last seen in 2014.

The gains overcame concern that relations with China, which had warmed under Tsai’s predecessor, would deteriorate under a Democratic Progressive Party government perceived as less friendly to Beijing.    [FULL  STORY]

CTBC aims to be one of 1st banks to provide Android Pay services

The China Post
Date: May 19, 2017
By: CNA

TAIPEI, Taiwan — CTBC Bank (中信銀), the banking flagship of CTBC Financial Holding co. (中信金), confirmed on Thursday that it has agreed to work with U.S. high-tech giant Google Inc. with the aim of becoming the first bank in Taiwan to provide Android Pay digital wallet services.

Local media said that CTBC Bank is among the Taiwanese banks gearing up to provide Android Pay services, which could be launched in the local market in June. Other candidates for the new service include First Commercial Bank (一銀) and Bank SinoPac (永豐銀), the reports added.

If Android Pay is provided in Taiwan as reported, the digital payment system will be the third foreign mobile payment platform following Apple Pay, which started in late March, and Samsung Pay, which began in early May.

Android Pay is a digital wallet payment system that powers in-app and tap-to-pay purchases on mobile devices. It will enable users to make payments with Android phones, tablets or watches.   [FULL  STORY]

CTBC aims to be one of 1st banks to provide Android Pay services

Focus Taiwan
Date: 2017/05/18
By: Tien Yu-pin and Frances Huang

Taipei, May 18 (CNA) CTBC Bank (中信銀), the banking flagship of CTBC Financial

(CNA file photo)

Holding co. (中信金), confirmed on Thursday that it has agreed to work with U.S. high-tech giant Google Inc. with the aim of becoming the first bank in Taiwan to provide Android Pay digital wallet services.

Local media said that CTBC Bank is among the Taiwanese banks gearing up to provide Android Pay services, which could be launched in the local market in June. Other candidates for the new service include First Commercial Bank (一銀) and Bank SinoPac (永豐銀), the reports added.

If Android Pay is provided in Taiwan as reported, the digital payment system will be the third foreign mobile payment platform following Apple Pay, which started in late March, and Samsung Pay, which began in early May.    [FULL  STORY]

FSC to formulate program to boost financial sector

Taipei Times
Date: May 19, 2017
By: Ted Chen / Staff reporter

The Financial Supervisory Commission (FSC) yesterday said it would formulate a strategic plan to boost the financial sector, as it faces tremendous challenges, including persistently low interest rates at home and in major markets worldwide.

While the nation has not been subject to negative interest rate policies seen in Japan or aggressive easing measures seen in Europe, persistently low interest rates have left local banks with weak growth prospects, FSC Chairman Lee Ruey-tsang (李瑞倉) told a news conference.

CUTTHROAT PRICING

As local banks fight over an ever-shrinking profit pool in the domestic market, they have brought their penchant for cutthroat price competition to overseas markets in search of higher returns, Lee said.    [FULL  STORY]

Foxconn boss Terry Gou to appoint Taiwanese as new Sharp chairman

Wang Chien-erh, the chairman of GIS-KY, emerges as parent company Foxconn Technology Group’s top choice

Taiwan News
Date: 2017/05/18
By: Judy Lin, Taiwan News, Staff Writer

TAIPEI (Taiwan News)—The chances of Foxconn Technology Group (also known as

Hon Hai announces Sharp deal

Hon Hai) founder and Chairman Terry Gou (郭台銘) appointing a Taiwanese nominee to become the chairman of its Japan-based display business Sharp, are high, according to a report by the Chinese-language media outlet Now News.

The favored candidate, Wang Chien-erh (王建二), is the chairman of Hon Hai Precision touch display and panel business GIS-KY (業成).

Gou values the 45-year-old Wang’s contributions at GIS-KY by helping parent company Foxconn clinch several large Apple orders through a unique megasite business model.

He also vertically integrated the display manufacturing process by encompassing touch sensors, touch sensor lamination, and liquid crystal monitor modules.   [FULL  STORY]