CLOSING IN:The ￥300bn credit line moves forward Hon Hai’s ￥600bn takeover bid — which has been stalled almost since Sharp’s board agreed to it

Taipei Times
Date: Mar 20, 2016
By: Bloomberg

Hon Hai Precision Industry Co (鴻海精密) has reached a basic agreement with Sharp Corp’s banks over a ￥300 billion (US$2.69 billion) line of credit, according to the Yomiuri Shimbun, potentially clearing a hurdle toward a takeover of the Japanese electronics maker.

Under the agreement, Sharp would be able to borrow from its main banks, Mizuho Financial Group Inc and Mitsubishi UFJ Financial Group Inc, if it suffers losses from potential liabilities or needs new investments, the Japanese daily said, without giving the source of the information.     [FULL  STORY]

Taiwan News
Date: 2016-03-18
By: Central News Agency

Taipei, March 18 (CNA) More than 50 percent of bank clients in Taiwan think that the domestic economy will grow by no more than 1.4 percent this year, which is lower than the government’s latest forecast, according to a survey released Friday by Cathay Financial Holding Co.

In mid-February, the Directorate General of Budget, Accounting and Statistics lowered its forecast for Taiwan’s 2016 economic growth from 2.32 percent to 1.47 percent, citing a worse than expected export performance amid weakening global demand.

However, 50.9 percent of the respondents in the Cathay Financial poll projected an even lower economic growth of below 1.4 percent this year, while 8 percent estimated a more than 2 percent annual growth.

Despite the downbeat outlook toward the 2016 economic growth, however, the poll showed a higher economic optimism index.     [FULL  STORY]

‘SERIOUS WORRY’:Analysts said in the event of a merger, order loss would be certain and could lead to an exodus of executives and engineers from SPIL, possibly to China

Taipei Times
Date: Mar 19, 2016
By: Lisa Wang / Staff reporter

Advanced Semiconductor Engineering Inc’s (ASE, 日月光半導體) renewed attempt to buy out Siliconware Precision Industries Co (SPIL, 矽品精密) via a holding company does not sound convincing to clients and industry experts, an analyst said yesterday.

ASE’s move came as it aims to clinch a merger with SPIL after the world’s biggest chip packager suffered a setback in its second tender offer to boost its holding in SPIL to a controlling 49 percent stake, from 25 percent.

The unsuccessful takeover bid — coming after ASE failed to obtain permission from the Fair Trade Commission (FTC) to buy the additional stake in SPIL as of the expiration date on Thursday — also thwarts ASE’s ultimate goal to fully acquire its smaller rival.     [FULL  STORY]

Taiwan News
Date: 2016-03-17
By: Central News Agency

Taipei, March 17 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) has become a safe haven for foreign institutional investors, and with continued foreign buying, market capitalization of the stock repeatedly hit new highs, analysts said Thursday.

On his Facebook page, Hsieh Chin-ho, chairman of Taiwan-based Investment Media Ltd. said that TSMC, the most heavily weighted stock in the local market, had risen more than 20 percent from a recent low of NT$131.50 recorded in mid-January.

Hsieh said that the strength of TSMC largely came from foreign institutional investors who have had recorded a net buy of 308.19 million TSMC shares so far this year to push the stock up to an intraday high of NT$160 (US$4.92) on Thursday.

Based on Thursday’s intraday high, TSMC’s market cap hit a record high of NT$4.14 trillion. Even though the stock closed off its high at NT$158.50, its market cap reached a new high of around NT$4.11 trillion.     [FULL  STORY]

Taiwan News
Date 2016-03-16
By: Matthew Strong. Taiwan News, Staff Writer

TAIPEI (Taiwan News) – A takeover bid by Advanced Semiconductor Engineering Co. for Siliconware Precision Industries Co. had effectively failed after the government’s Fair Trade Commission failed to give its views on the deal Wednesday, just one day before the official deadline.
SPIL, the world’s third-largest integrated circuit packaging and testing company, has been the target of a takeover battle for months, with Chinese involvement also playing a part.

In order to ward off advances from ASE, the world’s biggest chip packager and tester, SPIL management has sought support from tycoon Terry Gou’s Hon Hai Precision Industry Co., Ltd. and, more controversially, from China’s Tsinghua Unigroup Inc.

March 17 was the deadline for the ASE offer, but the FTC’s inability to reach a decision for or against has in effect ended the present stage of the process and sunk ASE’s takeover plans, reports said.     [SOURCE]

Focus Taiwan
Date: 2016/03/16
By: Jeffrey Wu and Elaine Hou

Taipei, March 16 (CNA) A Taiwanese researcher and entrepreneur credited with founding one of the most innovative companies in the field of Artificial Intelligence (AI) has been named among 121 young global leaders selected by the World Economic Forum (WEF) in 2016.

Yu Chih-Han (游直翰), chief executive officer and co-founder of the start-up Appier, was the only Taiwanese on this year’s list, which was released Wednesday. His company is a technology enterprise that helps clients develop strategies and commercial policies by using artificial intelligence in a cross screen era.

The 121 men and women selected as young global leaders are “scientists, government leaders, future business leaders, social activists and artists, aged under 40, who are shaking up policy, society and the world around them,” the WEF said.    [FULL  STORY]

GOVERNMENT ASSISTANCE:Food and communications industry chairmen have urged the president-elect to assist more sectors to enter the international market

Taipei Times
Date: Mar 17, 2016
By: Crystal Hsu / Staff reporter

Industrial heavyweights yesterday urged the incoming government to maintain cross-strait rapprochement and facilitate a review of the service trade agreement with China to help boost the competitiveness of Taiwanese exports.

“All eyes will be on president-elect Tsai Ing-wen (蔡英文) during her inauguration speech on May 20, and she needs political prowess and delicacy when setting the tone for her leadership in the next four years without estranging Beijing,” Chinese National Association of Industry and Commerce (CNAIC, 工商協進會) chairman Lin Por-fong (林伯豐) said.

Lin, also chairman of Taiwan Glass Industry Corp (台灣玻璃), said at a business gathering in Taipei that extending the “status quo,” as Tsai has said at public engagements, is both vague and inadequate.

Cross-strait harmony is crucial to Taiwan’s economy as many firms have moved operations to China, the destination for 40 percent of outbound shipments, Lin said.     [FULL  STORY]