Business and Finance

MediaTek asks government to lift ban on Chinese investment

Want China Times
Date: 2015-10-15
By: Liu Ching-yu and Staff Reporter

Taiwan’s Ministry of Economic Affairs has said it is carefully evaluating the

A MediaTek chip. (File photo/China Times)

A MediaTek chip. (File photo/China Times)

feasibility of lifting a ban on Chinese investment in the country’s chip designers but Chinese companies are still prohibited from setting up independent chip design companies in Taiwan, our sister paper Commercial Times reports.

The ministry issued a statement after MediaTek, the Taiwan-based chip designer with a greater than 30% market share in China’s smartphone chip market, was reported to be seeking funding from Chinese companies including leading state telecom carrier China Mobile and major smartphone manufacturer Xiaomi. MediaTek has been facing intensive competition in the country, especially after China’s Tsinghua Unigroup acquired domestic chip designers Spreadtrum and Rockchip Electronics, the ministry noted.     [FULL  STORY]

TSMC cuts capital spending by 27%

CAPITAL EXPENDITURE:Despite a sharp downturn in the semiconductor industry, analysts say that TSMC’s partnership with Apple Inc remains strong

Taipei Times
Date: Oct 16, 2015
By: Lisa Wang  /  Staff reporter

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies

Left to right, Taiwan Semiconductor Manufacturing Co co-chief executive Wei Che-chia, president and co-chief executive Mark Liu and chief financial officer Lora Ho, take their seats at a shareholders’ meeting in Taipei yesterday.  Photo: Chang Chia-ming, Taipei Times

Left to right, Taiwan Semiconductor Manufacturing Co co-chief executive Wei Che-chia, president and co-chief executive Mark Liu and chief financial officer Lora Ho, take their seats at a shareholders’ meeting in Taipei yesterday. Photo: Chang Chia-ming, Taipei Times

chips for Apple Inc’s iPhone 6S smartphones, yesterday slashed this year’s capital spending by 27 percent, after weak demand for smartphone chips drove down quarterly net profits to their lowest in five quarters.

TSMC plans to spend US$8 billion on new equipment and facilities this year, rather than allocating a capital budget of between US$10.5 billion and US$11 billion as it estimated in June. This year’s spending is the lowest since 2011.

Earlier this week, Intel Corp cut its capital spending for the fourth time to US$7.3 billion amid a slowing market demand.

“This year, due to weaker global economy, a stronger US dollar and volatile financial markets, consumer electronics market has been negatively effected. This results in a lack of growth in the overall semiconductor market,” TSMC co-chief executive Mark Liu (劉德音) said.     [FULL  STORY]

EU to explore launching negotiations on investment with Taiwan

Focus Taiwan
Date: 2015/10/14
By: Leaf Chiang and Bear Lee

Brussels, Oct. 14 (CNA) The European Commission said Tuesday that it will explore launching negotiations on investment with Taiwan as part of its trade globalization plan.

The European Commission, the executive arm of the European Union (EU) , published its blue print report for future trade and economic strategy, titled “Trade for All”.

The report said that operating in an increasingly integrated regional supply chain, EU investors in East Asia would benefit from a broader network of investment agreements in the region.     [FULL  STORY]

Dell touts synergy in acquisition of data storage firm EMC

Want China Times
Date: 2015-10-14
By: CNA

Dell, the world’s third-largest computer maker, said Tuesday at its annual

Paul Perez speaks at the Dell Enterprise Forum 2015 in Taipei, Oct. 13. (File photo/Yen Chien-lung)

Paul Perez speaks at the Dell Enterprise Forum 2015 in Taipei, Oct. 13. (File photo/Yen Chien-lung)

enterprise forum in Taiwan that its acquisition of data storage company EMC will be complementary in terms of products and market strategy.

Paul Perez, who was named chief technology officer of Dell’s Enterprise Solutions Group in March, told the media at the forum that he has a high degree of respect for EMC because it has been through an aggressive transformation, from a provider of data storage and protection to an integrator of systems.

“EMC is a well-diversified systems vendor and systems integrator that has a fair degree of complementary value to Dell at a product portfolio level and also at market level,” Perez said.

“We think that this is a case of one plus one being greater than two,”the Dell CTO said, adding that EMC provides solutions primarily to large enterprises while Dell is focused on medium-sized enterprises.     [FULL  STORY]

Solar firms urge looser regulations

WASTED SPACE:The head of a solar power committee said there are 16 hectares of agricultural land not being used that could generate as much as 160 gigawatts daily

Taipei Times
Date: Oct 15, 2015
By: Lisa Wang  /  Staff reporter

Solar power companies yesterday suggested that the government should

A promoter introduces AU Optronics Corp products to visitors at PV Taiwan, an annual international photovoltaic industry trade show, at the Taipei World Trade Center Nangang Exhibition Hall yesterday.  Photo: CNA

A promoter introduces AU Optronics Corp products to visitors at PV Taiwan, an annual international photovoltaic industry trade show, at the Taipei World Trade Center Nangang Exhibition Hall yesterday. Photo: CNA

relax restrictions related to the use of idle agricultural land to facilitate the development of the nation’s solar industry.

Taiwanese solar cell makers and solar wafer supplies rely on exports to generate profit, leaving them vulnerable to global trade disputes and political tussles, Neo Solar Power Corp (新日光能源) CEO Sam Hong (洪傳獻) said.

In an effort to the reduce the impact of negative factors overseas, domestic firms have turned to their home market to explore more stable growth and are urging the government to relax a number of regulations to help promote green energy in the nation.     [FULL  STORY]

AIDC turns to local peers as clients step up demands

Taipei Times
Date:  Oct 14, 2015
By: Ted Chen  /  Staff reporter

Aerospace Industrial Development Corp (AIDC, 漢翔航空工業), the nation’s largest civilian and military aircraft manufacturer, yesterday said that it has decided to improve ties with its 123 domestic suppliers in the face of more stringent requirements set by major clients.

“Since 2013, Boeing has adopted a policy that requires suppliers to cut prices by at least 10 percent before 2019 or risk being dropped from its list of suppliers for the A320 aircraft,” AIDC president Butch Hsu (徐延年) told an investors’ conference in Taipei.

Instead of pursuing redundant investments, AIDC plans to bolster partnerships with its domestic peers, and source materials and parts locally, Hsu said.     [FULL  STORY]

Court rejects ASE’s legal action against Siliconware

Focus Taiwan
Date: 2015/10/13
By: Jalen Chung and Frances Huang

Taipei, Oct. 13 (CNA) A court in Taichung rejected Tuesday a request by Advanced Semiconductor Engineering Inc. (ASE, 日月光), the world’s largest integrated circuit packaging and testing services provider, to bar a special general meeting planned by Siliconware Precision Industries Co. (矽品).

Since Oct 1, ASE has been the largest shareholder of Siliconware after completing an acquisition of a 25 percent stake in Siliconware through a tender offer.

ASE then filed an injunction with the district court in Taichung to block the meeting, which is scheduled for Oct. 15 and aims to secure approval from Siliconware’s shareholders for a stock swap deal with Hon Hai Precision Industry Co. (鴻海).

If the proposed stock swap deal goes through, Hon Hai will take a 21.24 percent stake in Siliconware, which would own a 2.2 percent stake in Hon Hai, and ASE’s stake in Siliconware would be diluted to about 19 percent, trailing Hon Hai.     [FULL  STORY]

Delegation heads to APEC energy meeting

Focus Taiwan
Date: 2015/10/12
By: Huang Chiao-wen and Lilian Wu

Taipei, Oct. 12 (CNA) Deputy Economic Affairs Minister Shen Jong-chin (沈

CNA file photo

CNA file photo

榮津) and his delegation set off for the Philippines on Monday to attend the Asia-Pacific Economic Cooperation (APEC) Energy Ministerial Meeting there.

The meeting, centered around the theme “Towards an Energy Resilient APEC Community,” is being held in Cebu from Oct. 12 to 14.

Shen is scheduled to speak at the conference on Tuesday and will discuss the importance of developing renewable energy and promoting energy efficiency. He will also seek the support of APEC members for Taiwan’s APEC green energy finance initiative.     [FULL  STORY]

Gas and diesel prices in Taiwan rise this week

Want China Times
Date: 2015-10-12
By: CNA and Staff Reporter

From midnight Sunday, gasoline and diesel prices in Taiwan will rise by

Ko Wen-je, left, wears a Teemo hat next to a surgeon made out of balloons at the 2015 World Championship of League of Legends in Taipei, Oct. 11. Ko was a career surgeon before turning to politics. (Photo/CNA)

Ko Wen-je, left, wears a Teemo hat next to a surgeon made out of balloons at the 2015 World Championship of League of Legends in Taipei, Oct. 11. Ko was a career surgeon before turning to politics. (Photo/CNA)

NT$0.8 and NT$0.9 per liter, respectively, at state-run oil company CPC Corp’s gas stations, because of increases in global crude oil prices this past week.

CPC Corp said Sunday that after the adjustment, its 92, 95 and 98 octane unleaded gasoline will sell for NT$23.6 (US$0.73), NT$25.1 (US$0.78) and NT$27.1 (US$0.84) per liter, respectively. Diesel fuel will be NT$21.5 (US$0.67) per liter.

Privately run Formosa Petrochemical Corp said that an hour later it would follow the CPC Corp price increases, bringing its prices for 92, 95 and 98 octane unleaded gasoline to NT$23.5 (US$0.73), NT$25 (US$0.77) and NT$27.3 (US$0.85) a liter respectively.      [FULL  STORY]

Formosa Group ‘not part’ of Kau move

BOARD SHUFFLE:Charles Kau’s resignation has led to much speculation over what impact his future career choices might have on the DRAM industry in Taiwan and China

Taipei Times
Date: Oct 13, 2015
By: Lisa Wang  /  Staff reporter

DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said that its parent company, Formosa Group (台塑集團), did not take part in discussions about former president Charles Kau’s (高啟全) career plans.

There is speculation that Kau is to work for China’s Tsinghua Unigroup Ltd (清華紫光) to help the state-backed chip designer expand into DRAM manufacturing business, as Beijing steps up its efforts to boost its role in the world’s semiconductor industry.

Nanya Technology made the remarks in an attempt to dismiss speculation that Kau might play an important part in the formation of a new DRAM camp that includes Nanya Technology, Tsinghua Unigroup and Micron Technology Inc, given that Kau is to retain his seat in Nanya Technology’s board after leaving the company.     [FULL  STORY]