Business and Finance

Semiconductor companies consider new plants in the U.S.

Chip makers Intel and Taiwan Semiconductor are talking to the Trump administration about building new semiconductor plants in the United States

abc News
Date: May 10, 2020
By: The Associated Press

NEW YORK — Intel and a Taiwanese company are talking to the Trump administration about building new semiconductor plants in the United States amid concern about relying on suppliers in Asia for chips used in a wide variety of electronics.

A spokesman for Intel, the biggest American chip maker, said Sunday that the company is in discussions with the Defense Department about improving domestic technology sources. Spokesman William Moss said Santa Clara, California-based Intel is well-positioned to work with the government “to operate a U.S.-owned commercial foundry.”

Taiwan Semiconductor Manufacturing Co. is open to building a plant outside of Taiwan and has talked with the Commerce Department, a spokeswoman said.

“We are actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet,” said the TSMC spokeswoman, Nina Kao.    [FULL  STORY]

Taiwan fuel prices see biggest jump in 8 years

Focus Taiwan
Date: 05/10/2020
By: Liu Pei-cheng and Chiang Yi-ching

Taipei, May 10 (CNA) Taiwan's two major fuel suppliers on Sunday announced the biggest price hikes in the country since 2012, saying gasoline and diesel prices will increase by NT$2 and NT$2.2 per liter, respectively.

Effective midnight Sunday, prices at the fuel pumps of state-run petroleum refiner CPC Corp., Taiwan will rise to NT$18.2 per liter for 92 octane unleaded, NT$19.7 per liter for 95 octane unleaded and NT$21.7 per liter for 98 octane unleaded, the company said.

For super diesel, the retail price will be raised to NT$15.4 per liter, according to CPC.

Based on an agreement reached in mid-April, OPEC countries and their allies began to cut oil production in May, which has contributed to the rise of fuel prices, CPC said.    [FULL  STORY]

.Taiwan leading global supply chain

SPENDING BIG: More than 450 companies have pledged to invest nearly NT$1 trillion in the nation under a government incentive program, while another 56 are in line to invest

Taipei Times
Date:  May 11, 2020
By: Staff writer, with CNA

Taiwan Institute of Economic Research president Chang Chien-yi speaks to reporters in Taipei on Nov. 11 last year.
Photo: CNA

Taiwan has become a leader in the global supply chain, as an increasing number of its overseas companies have been investing more funds at home, economists said on Saturday.

Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) president Chang Chien-yi (張建一) said that the government’s incentive programs for Taiwanese investors, launched last year, have attracted many top-tier Taiwanese manufacturers to return.

In their wake, second and third-tier industries have also returned, helping the nation reshape its production structure, Chang said.

“The move by these Taiwanese investors to come home has helped Taiwan assume the position of commander, or the brain, of the global supply chain,” he said. “This development is expected to boost Taiwan’s status in global trade.”    [FULL  STORY]

Manufacturers’ sales fell in 2019 but R&D spending hit 5-year high

Focus Taiwan
Date: 05/09/2020
By: Wu Po-wei and Frances Huang

Taipei, May 9 (CNA) Taiwanese manufacturers saw a sales drop of almost 3 percent in 2019, amid a trade war between the United States and China, but their spending on research and development (R&D) rose to a five-year high, according to the Ministry of Economic Affairs (MOEA).

MOEA data indicated that with the Washington-Beijing trade dispute sending ripples through the global economy and dragging down raw material prices, the revenue of manufacturers listed on the stock market fell 2.8 percent from a year earlier to NT$16.5 trillion (US$552 billion).

Nonetheless, manufacturers here continued to invest in R&D, spending NT$460.8 billion in 2019, an annual increase of 7.9 percent, the highest amount and biggest growth in five years, the data showed.

In 2019, the old economy sector was hardest hit by the U.S.-China trade war and falling product prices, the data indicated.    [FULL  STORY]

Rotational buying buoys local shares

CAUTIOUS OPTIMISM: Select large-cap stocks helped drive up the TAIEX, but gains were limited because of concerns by investors about an impending US jobs report

Taipei Times
Date: May 10, 2020
By: Staff writer, with agencies

Local shares on Friday extended momentum from a session earlier to close above 10,900 points, led by select large-cap stocks, as buying was sparked by a rally on US markets overnight, dealers said.

However, buying was capped as market sentiment remained cautious about the global economy amid the COVID-19 pandemic ahead of a jobs report from Washington due later in the day, the dealers said.

The TAIEX on Friday ended up 58.50 points, or 0.54 percent, at 10,901.42, after moving between 10,883.22 and 10,970.70, on turnover of NT$185.693 billion (US$6.21 billion).

That was a 0.8 percent slide from a close of 10,992.14 on April 30 — the last day of trading in a week shortened by the International Workers’ Day long weekend.    [FULL  STORY]

Taiwan operators take mobile hit, ready 5G moves

Mobile World Live
Date:  08 MAY 2020

The three major mobile operators in Taiwan, Chunghwa Telecom; Taiwan Mobile; and Far EasTone, reported similar results for Q1 over the past week, with all suffering declines in mobile revenue and device sales, and taking initial steps to prepare for 5G launches later in the year.

All three won 5G spectrum in three bands in an auction concluded in January, with their business plans approved by Taiwan’s National Communications Commission in late March.

Chunghwa Telecom
The operator led the market during Q1, with GSMA Intelligence figures showing it had a 34.3 per cent share by subscribers compared with around 25 per cent each for its two rivals.

Mobile service revenue slid 3 per cent year-on-year to TWD14.3 billion ($477 million), which the operator credited to market competition and VoIP substitution. Device sales fell 15.6 per cent to TWD8 billion. It didn’t release ARPU figures.    [FULL  STORY]

Taiwan’s economy shows resilience in Q1

High demand of electronic components lift export growth, dining industry still struggling

Taiwan News
Date: 2020/05/08
By Chris Chang, Taiwan News, Staff Writer

Electronic products, components still create momentum of Taiwan’s exports  (CNA photo)

TAIPEI (Taiwan News) — Taiwan's international trade climbed in Q1 despite the severe impacts the Wuhan coronavirus (COVID-19) pandemic has had on the world economy; goods shipped to China, the U.S., and ASEAN countries saw the largest percentage increase.

According to Taiwan's Ministry of Finance (MOF), the country's total exports in Q1 increased by 3.7 percent from last year, as a result of a 20 percent surge in electronic component exports alone. Meanwhile, imports shot up to 3.5 percent, mainly due to the high demand for manufacturing equipment and memory chips.

Regarding trading partners, exports to the U.S. hit a historical high in Q1, with computers, disks, and Internet equipment making up the bulk of shipped goods. The sales of electronic components to Singapore turned a previous loss in exports to Southeast Asian countries over the past six quarters into a 5.6 percent increase.

Because of the mixed demand for high-end technology, such as wafer testing and packaging, as well as raw materials for machines and plastic products, export growth to China was pegged at 6.7 percent.    [FULL  STORY]

Acer, Asustek post higher April sales due to remote working, learning

Focus Taiwan
Date: 05/08/2020
By: Jeffrey Wu and Frances Huang

Taipei, May 8 (CNA) Acer Inc. and Asustek Computer Inc., the two leading PC brands in Taiwan, both reported on Friday an increase in sales for April due to more people working and learning remotely, which boosted demand for computer products, offsetting the economic impact from the COVID-19 pandemic.

Acer said it posted NT$19.75 billion (US$661 million) in consolidated sales, up 41.1 percent from a year earlier, while Asustek announced its consolidated sales for the month rose 13.7 percent from a year earlier to NT$22.74 billion.

In a statement, Acer said although the COVID-19 pandemic had forced many consumers to stay at home, the company benefited from solid demand because of an increase in online working and learning.

Under such circumstances, Acer said sales of its Chromebook notebook computers rose 327.9 percent from a year earlier in April, while purchases of its ultrabook computers almost doubled last month.    [FULL  STORY]

Exports shrink on virus woes

SLUGGISH DEMAND: Mineral product shipments tumbled 63.2%, while exports of textiles fell 37.4% following the postponement and cancelation of sports events

Taipei Times
Date: May 09, 2020
By: Crystal Hsu / Staff reporter

The nation’s exports last month shrank 1.3 percent year-on-year to US$25.24 billion, the lowest since May 2017, as poor shipments of raw materials — due in part to price routs — more than eclipsed robust shipments of electronic components, the Ministry of Finance said yesterday.

The retreat could worsen to between 4 percent and 6 percent this month as most global nonessential businesses are closed to help contain the COVID-19 pandemic, stalling trade activity, the ministry said.

“Taiwan may feel a sharper pinch from the COVID-19 pandemic going forward, with downside risks looming larger than upside surprises,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a media briefing in Taipei.

Mineral product shipments tumbled 63.2 percent, the worst decline in history, as unprecedented shutdowns in Europe, the US and parts of Asia saw demand slump, Tsai said.   [FULL  STORY]

Air France to cancel Taipei-Paris flight route from June 1

Focus Taiwan
Date: 05/07/2020
By: Yu Hsiao-han and Lee Hsin-Yin

CNA file photo

Taipei, May 7 (CNA) Air France announced Thursday that it will cancel all direct flights between Taipei and Paris, with effect from June 1, citing financial issues due to the COVID-19 coronavirus pandemic.

The carrier said it will terminate its three round-trip services per week between the two cities, after it temporarily suspended the flights on March 8 this year amid the pandemic.

In a letter to its business partners, Air France said the airline industry has been among those that have taken the brunt of the economic fallout from the coronavirus pandemic since early 2020.
[FULL  STORY]