Business and Finance

TSMC Q4 sales hit new high, beating expectations

Focus Taiwan
Date: 01/10/2020
By: Chang Chien-chung and Frances Huang

Taipei, Jan. 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported a new quarterly high in sales for the fourth quarter of last year Friday, with market analysts attributing the growth to solid demand for high-end smartphones and high-performance computing (HPC) devices.

TSMC said in a statement that it posted NT$317.24 billion (US$10.57 billion) in consolidated sales for the October-December period, up 8.25 percent from a quarter earlier.

The fourth-quarter sales went beyond TSMC's earlier forecast of between NT$312.1 billion and NT$315.2 billion made by the company in mid-October.

It was the first time the chipmaker had generated revenue that breached the NT$300 billion mark.
[FULL  STORY]

Nanya profit slumps almost 84%

NEXT GENERATION: The firm plans to start pilot production of its first 10-nanometer 8-gigabyte low-power DDR4 and high-density DDR5 chips in the second half of the year

Taipei Times
Date: Jan 11, 2020
By: Lisa Wang  /  Staff reporter

DRAM chipmaker Nanya Technology Co (南亞科技) yesterday posted its weakest net quarterly profit in three-and-a-half years as prices dipped on excess inventory and sluggish demand.

Net profit for last quarter fell almost 84 percent to NT$1.28 billion (US$42.64 million) from NT$7.95 billion a year earlier, or earnings per share of NT$0.42 from NT$2.57.

While shipments last quarter grew more than 45 percent from a year earlier, prices plummeted more than 45 percent, Nanya said.

On a quarterly basis, net profit tumbled 42 percent from NT$2.21 billion.    [FULL  STORY]

Work starts on smart industrial park in New Taipei

NT$4.1 billion Baogao Industrial Park set to create 9,600 jobs in ICT, biotech and cloud computing

Taiwan News
Date: 2020/01/09
By: Ching-Tse Cheng, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — After investing NT$4.1 billion (US$137 million) New Taipei City Government held a beam-raising ceremony on Thursday (Jan. 9) for Baogao Industrial Park (寶高智慧產業園區) in Xindian District.

The smart technology park is expected to finish construction by March 2021, before opening to the public in September. The 41,000 square meter park will provide accommodations for 119 Taiwan corporations in information and communication technology (ICT), cloud computing, digital operations, and biotechnology, creating more than 9,600 jobs.    [FULL  STORY]

Fast food chain KFC to raise prices in Taiwan, beginning Friday

Focus Taiwan
Date: 01/09/2020
By: Chang Hsiung-feng and Chiang Yi-ching

Photo from KFC Taiwan’s Facebook page

Taipei, Jan. 9 (CNA) American fast food chain KFC (Kentucky Fried Chicken) is raising the prices of some of its products in Taiwan to reflect growing costs, the company announced Thursday.

The price hike, scheduled to take place on Friday, will see prices rise by 3.4 percent on average, KFC said in a statement.

According to KFC, the price of egg tarts will increase by NT$3 (US$0.1), NT$3 for each piece of fried chicken, NT$6 for all items on the breakfast menu, NT$4 for each XL Combo set, and NT$10 for any Individual Combo, except for the NT$99 Individual Combo.

Nearly 60 percent of prices will remain unchanged, KFC said.    [FULL  STORY]

Largan posts record NT$28bn net profit

ROBUST DEMAND: Sales last quarter increased 47.69 percent on an annual basis to NT$18.36 billion, but declined 0.68 percent quarter-on-quarter, company data showed

Taipei Times
Date: Jan 10, 2020
By: Natasha Li  /  Staff reporter

Largan Precision Co (大立光), which supplies camera lenses to Apple Inc, yesterday posted record-high net profit of NT$28.26 billion (US$941.75 million) for last year, thanks to robust customer demand and a higher gross margin.

The company’s net profit increased 16 percent year-on-year from NT$24.37 billion in 2018. Earnings per share last year climbed to NT$210.69 from NT$181.67 in 2018.

Cumulative revenue reached NT$60.75 billion, up 22 percent from NT$49.95 billion in 2018, while gross margin inched up to 69.04 percent from 68.76 percent in 2018.

Net profit in the fourth quarter of last year grew 24.91 percent year-on-year to NT$8.09 billion, or earnings per share of NT$60.32, while fourth-quarter gross margin rose to 71.13 percent from 69.12 percent in the third quarter, thanks to an improved product mix, the company said.

Sales last quarter increased 47.69 percent year-on-year to NT$18.36 billion, but declined 0.68 percent on a quarterly basis, a company financial statement showed.    [FULL  STORY]

Taiwan shares end down amid geopolitical conflicts

Taiwan News
Date: 2020/01/08
By:  Central News Agency

Shares in Taiwan moved lower Wednesday, extending losses from a session earlier, as investors were motivated to cut their holdings by Iran's bombing of an airbase in Iraq housing U.S. troops, dealers said.

While non-tech stocks largely felt the pinch resulting from the conflicts in the Middle East, government-led funds were said to pick up some electronics heavyweights, in particular contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which limited the downturn by the end of the session, the dealers said.

The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, closed down 63.22 points, or 0.53 percent, at 11,817.10, after moving between 11,777.45 and 11,899.67 on turnover of NT$149.51 billion (US$4.97 billion).

The market opened down 0.52 percent in a knee-jerk reaction to the losses in U.S. futures, which plunged more than 170 points at one point, indicating an ugly opening in the U.S. spot market later in the day in the wake of the Tehran military action that was aimed at retaliating for Washington's killing of a top Iranian military leader last week, the dealers said.    [FULL  STORY]

Yageo to remit NT$10 billion for local investment

Focus Taiwan
Date: 01/08/2020
By: Chung Jung-feng and Frances Huang\

Taipei, Jan. 8 (CNA) Yageo Corp., a leading passive electronics component maker in Taiwan, said

Yageo Chairman and CEO Pierre ChenCNA file photo\

Wednesday that it will remit NT$10 billion (US$332 million) back to Taiwan from overseas for local investment.

Yageo, a producer of components such as chip resistors, inductors and multi-layer ceramic capacitors (MLCC), said Taiwan is a hub of the company's research and development, as well as production, and the investment will be aimed at developing high-end items for automotive electronics use and 5G applications.

Currently, Taiwan accounts for 50 percent of Yageo's total global production value, and makes up about 90 percent of the company's R&D resources.

Yageo joins a growing list in which many manufacturers have heeded the government's advocacy to move their funds back home for investment.    [FULL  STORY]

Upscale office rents might increase 5%

SUPPLY SHORTAGE: Office rents last year rose 2.9 percent on average, the fastest increase in 10 years, with steeper increases in popular locations, JLL Taiwan said

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

Upscale office rents in Taiwan might increase 3 to 5 percent this year, driven by a supply shortage and sustained demand from companies in the technology, financial and biological medicine sectors, the local branch of international consultancy Jones Lang LaSalle (JLL) said yesterday.

JLL Taiwan, which commands a 60 percent share of the local leasing market, published the estimate after vacancy rates for grade A offices shrank to 2.1 percent in the final quarter of last year, while rents increased 1.1 percent to NT$2,806 (US$93.26) per ping (3.3m2).

The showing indicated a modest take-up rate of 5,498 ping during the October-to-December period, which the broker said resulted from a tight supply, rather than tepid demand.

For the whole of last year, office rents rose 2.9 percent on average, the fastest increase in 10 years, with steeper hikes for some buildings in popular locations, JLL senior market director Brian Liu (劉建宇) told a news conference in Taipei.    [FULL  STORY]

Taiwan’s foreign exchange reserves reach record level in 2019

Central Bank intervened in market four times since May: reports

Taiwan News
Date: 2020/01/07
By: Matthew Strong, Taiwan News, Staff Writer\

TAIPEI (Taiwan News) — Taiwan’s foreign exchange reserves reached a total of US$478.12 billion last month, the seventh consecutive monthly record, according to data from the Central Bank.

The new figure was more than US$4 billion higher than the previous record high in November, the bank announced Monday (Jan. 6).

As reasons for the record performance, officials named the rise of the euro against the U.S. dollar, income from investments in foreign currency, and the Central Bank’s own involvement in the market, according to a report by the Liberty Times.

The newspaper noted that it was the fourth time since last May that the bank acknowledged it had involved itself in the foreign currency market.    [FULL  STORY]

Hon Hai: report on cancellation of India investment untrue

Focus Taiwan
Date: 01/07/2020
By: Charles Kang, Chung Jung-feng and Frances Huang

Taipei, Jan. 7 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics maker, denied Tuesday a report in an Indian newspaper that the iPhone assembler has canceled a plan to invest US$5 billion in India due to an "internal dispute" with Apple Inc., one of the largest clients of the Taiwanese manufacturer.

In a statement, Hon Hai, known as Foxconn in the global market, said the report indicating that the company and its major clients were locked in an "internal dispute" was not true.

Currently, Hon Hai said, the group is working well with its major client in India, adding that the cooperation continues, so the group's production in India is proceeding smoothly.

Nevertheless, Hon Hai said the company will regularly review its global investment plans and make adjustments to meet the needs of its clients.    [FULL  STORY]