Foxconn, Samsung and Murata at risk from China exposure

Nikkei Asian Review
Date: March 08, 2020
By: DAISUKE MARUYAMA and KENSAKU IHARA, Nikkei staff writers

TOKYO/TAIPEI — Asian chipmakers and other high-tech manufacturers face a nearly $11 billion hit to profits — a 7% drop — in fiscal 2020 as the novel coronavirus outbreak saps both demand and their supply chains in China, according to research by Goldman Sachs.

Foxconn, the world largest iPhone assembler, stands to suffer one of the biggest blows, followed by South Korea's Samsung Electronics, Taiwan Semiconductor Manufacturing Co. and other East Asian names.

The outbreak marks a setback for companies just starting to recover from headwinds such as the U.S.-China trade war and a cyclical downturn in chip demand. East Asia's tech manufacturers in turn are watched as a leading indicator of global economic trends. 

"We think the pace of recovery in capacity utilization and monthly shipments over the next one to two months will determine the direction of share prices," Goldman analysts wrote in February in a report covering 105 major Asian manufacturers with various levels of mainland China exposure.     [FULL  STORY]

Taiwan News
Date: 2020/03/07
By JOE McDONALD , AP Business Writer, Associated Press

In this March 4, 2020 photo released by Xinhua News Agency, workers labor in a garment workshop while wearing masks at a foreign trade company in Neiq…

BEIJING (AP) — China’s exports fell by double digits in January and February as anti-virus controls closed factories, while imports sank by a smaller margin.

Exports tumbled 17.2% from a year earlier to $292.4 billion, a sharp reverse from December’s 7.8% rise, customs data showed Saturday. Imports declined 4% to $299.5 billion, down from the previous month’s 16.3% gain.

Trade was poised for a boost after Beijing and Washington removed punitive tariffs on some of each other’s goods in a trade truce. But those gains were offset by Chinese anti-virus controls that shut down much of the world’s second-largest economy starting in late January.

Exports to the United States plunged 27.7% in January and February to $43 billion, worsening from December’s 12.5% decline. Imports of American goods crept up 2.5% to $17.6 billion, but China still recorded a $25.4 billion trade surplus with the United States.   [FULL  STORY]

Focus Taiwan
Date: 03/07/2020
By: Jeffrey Wu and Frances Huang

Taipei, March 7 (CNA) A U.S. brokerage has cut a target of the benchmark weighted index on the Taiwan Stock Exchange or the Taiex to 12,000 points for this year, citing concerns over the economic impact resulting from a spread of the novel coronavirus (COVID-19).

In a recent research note, the American securities house said as an exports-oriented economy, Taiwan is expected to feel the pinch resulting from the impact from the virus contagion worldwide which could hurt global demand.

As a result, the brokerage has lowered its target for the Taiex for 2020 by 500 points from its previous estimate to 12,000, while it has also lowered projected earnings by Taiwanese firms listed on the equity market by 3 percent for this year.

Amid the rising escalating scare over the virus spread, the Taiex fell 202.93 points or 1.77 percent in February as foreign institutional investors registered a net sell of about NT$130 billion (US$4.33 billion) in the month.    [FULL  STORY]

Taiwan’s tourism and aviation industries are struggling, but most sectors have withstood heavy damage and the government has planned a $2 billion bailout.

The Diplomat
Date: March 06, 2020
By: Nick Aspinwall   

Taiwan, lauded for its response to the coronavirus despite its exclusion from the World Health Organization, is nevertheless bracing for an economic slowdown and planning to bail out its struggling aviation and tourism sectors.

The country, which confirmed its 45th case of COVID-19 on Friday, cut its 2020 economic growth estimate to 2.37 percent last month. On Wednesday, Taiwan’s statistics minister said it will “have no problem” maintaining 2 percent economic growth, helped in part by a planned $2 billion stimulus package, according to Reuters.

That package, approved by the cabinet on February 27, is currently being reviewed by Taiwan’s legislature.

Taiwan is a key cog in the global technology supply chain. The Taiwanese company Foxconn, a major supplier for Apple, said on Tuesday its first quarter revenue would drop 15 percent in sectors affected by production interruptions in China.    [FULL  STORY]

News department editors and salespeople hit by paper's latest cost-cutting exercise

Taiwan News
Date: =2020/03/06
By: Sophia Yang, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — Following the closure of sister company Next Magazine on Feb. 29, leading Taiwan newspaper publication the Apple Daily has revealed a layoff plan for editors and salespeople.

Launched in Taiwan in 2003 and founded by Hong Kong entrepreneur Jimmy Lai (黎智英), Apple Daily is one of the country's largest newspapers. People familiar with the matter told UDN the cut is larger than the "workforce adjustments" it has made over the years.

The news agency's labor union reportedly received a notice from the top on Thursday (March 5), which informed union leaders of the layoff plan prior to the announcement officially made to employees. Union leaders forwarded the message to the union's Facebook group and said the organization would ensure the rights of those being sacked.    [FULL  STORY]

Focus Taiwan
Date: 03/05/2020
By: Christie Chen

Taipei, March 5 (CNA) Taiwan shares closed up 122.47 points, or 1.08 percent, at 11,514.82 Thursday on turnover of NT$143.87 billion (US$4.8 billion).    [SOURCE]