Business and Finance

2 Taiwan companies win Apple orders due to defects in China’s red supply chain

Apple shifts orders to 2 Taiwan companies due to high defect rate in China's red supply chain

Taiwan News
Date: 2019/11/11
By: Keoni Everington, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — Due to production issues and a high defect rate with a key cog in China's "red supply chain," Apple has transferred orders to Taiwanese manufacturers as it ramps up production of its iPhone 11 and gears up for 5G phones.

Due to problems with production disruptions and low yield rates (high defect rates), Apple has switched orders away from Chinese Printed Circuit Board (PCB) supplier Suzhou Dongshan Precision Manufacturing Co., Ltd, in favor of Taiwan rivals Zhen Ding Technology Co., Ltd. (臻鼎科技) and Flexium Interconnect Inc. (台郡), reported UDN. Suzhou Dongshan is a member company of China's "red supply chain," Chinese technology companies given favorable government treatment to enable them to squeeze out foreign competitors entirely from the production process.

In recent years, China's rapidly rising red supply chain has increasingly robbed Taiwan's manufacturers of Apple's orders. Zhen Ding and Flexium are now leading the counterattack in breaking through the siege of red suppliers with a large-scale order of components from Apple for its newest phones.

As for reports the two companies will be picking up slack for Apple at Suzhou Dongshan's expense, neither company has publicly confirmed or denied the Apple orders. Zhen Ding says that it can meet the requirements of any client, while Flexium said it has a positive outlook toward new market demand and anticipates that production in the first quarter next year will be "a bit busier than usual," according to the report.    [FULL  STORY]

Taiwan’s GDP expected to grow 2.45% in 2020: think tank

Focus Taiwan
Date: 2019/11/11
By: Wu Po-wei and Frances Huang

Taipei, Nov. 11 (CNA) On the back of expectations of eased trade tension between the United States and China, Taiwan, an export- oriented economy, is likely to see its gross domestic product (GDP) growing 2.45 percent in 2020, the Taiwan Institute of Economic Research (TIER) said Monday.

The growth forecast by TIER, one of Taiwan's leading think tanks in Taiwan, was higher than an estimated 2.40 percent increase for 2019, but the think tank seemed to be more cautious than the government, as the Directorate General of Budget, Accounting and Statistics (DGBAS) forecast in August that the local economy will grow 2.58 percent next year.

It was the first time that TIER had given its forecast for Taiwan's 2020 GDP growth.

TIER President Chang Chien-yi (張建一) told reporters that after wrapping up high-level trade negotiations in October, Washington and Beijing are expected to sign phase one of a deal later in the year, which is a positive sign for global trade.    [FULL  STORY]

Adata’s Q3 net profit spikes to NT$423m

PRICE REBOUND: The company reported NT$423 million, compared with NT$110 million in the second quarter and NT$37 million in the third quarter of last year

Taipei Times
Date: Nov 12, 2019
By: Lisa Wang  /  Staff reporter

Adata Technology Co (威剛科技) yesterday reported a spike in net profit last quarter, as the potential easing of the US-China trade dispute helped drive a rebound in prices and demand.

That indicated that the world’s memory industry has ridden out a down-cycle and is on course for a recovery, as reflected in improving demand from the major data center operators and increased memory space in new smartphones, the world’s second-largest memory module supplier said in a statement.

Memorychip prices are expected to rise next year on the back of increasing demand from 5G, artificial intelligence, automotive electronics and other emerging applications, it said.

“The global memory industry is to regain growth in 2020, attributable to significant increases in data processing and transmission,” Adata said.   [FULL  STORY]

Taiwan’s first native tea wakes after thousands of years of sleep

'Taitung Yongkang No. 1' believed to date back to Ice Age

Taiwan News
Date: 2019/11/09
By: Huang Tzu-ti, Taiwan News, Staff Writer

Taitung Yongkang No. 1 tea tree (Tea Research and Extension Station photo)

TAIPEI (Taiwan News) — The first indigenous Taiwanese tea variety, which dates back to the Ice Age, has been named “Taitung Yongkang No. 1” (台東永康1號), as it was discovered in the eastern municipality of Taitung.

Formerly known as “Taiwan Tea No. 24” (台茶24號), the tea plant in June received official recognition as a variety only found in Taiwan, according to the Tea Research and Extension Station of the Council of Agriculture.    [FULL  STORY]

Fuel prices in Taiwan to rise by NT$0.2 this week

Focus Taiwan
Date: 2019/11/10
By: Tsai Peng-min and Elizabeth Hsu

Taipei, Nov. 10 (CNA) Taiwan's two major fuel suppliers on Sunday announced price hikes for this week, citing an increase in international crude oil prices amid easing trade tensions between the United States and China.

State-run oil refiner CPC Corp., Taiwan said the price of its gasoline and diesel will increase by NT$0.2 (US$0.007) per liter, from midnight Sunday.

After the increase, retail prices at CPC gas stations will be NT$26.6 per liter for 92 octane unleaded, NT$28.1 per liter for 95 unleaded, NT$30.1 per liter for 98 unleaded, and NT$24.4 per liter for super diesel.

CPC said that international crude oil prices have risen, in part because the U.S.-China trade frictions have been showing signs of easing.    [FULL  STORY]

Catcher reports mixed income results

STILL POSITIVE: While some profit results were weaker, Catcher’s shares rose 5.28% last week from the previous week as investors were still optimistic about its outlook

Taipei Times
Date:  Nov 11, 2019
By: Chen Cheng-hui  /  Staff reporter

Catcher Technology Co (可成), the nation’s leading supplier of light metal casings and enclosures for mobile devices, on Saturday reported net income of NT$3.399 billion (US$111.8 million) for last quarter, up 24.6 percent quarter-on-quarter, but down 48.21 percent year-on-year, or earnings per share (EPS) of NT$4.41, the lowest for the July-to-September quarter in nearly four years.

Third-quarter revenue was NT$27.82 billion, up 73.04 percent from the previous quarter and 10.87 percent from a year earlier, the company said in a financial statement.

Gross margin and operating margin improved from the previous quarter, but were lower than a year earlier at 23.13 percent and 16.05 percent respectively, Catcher’s data showed.

In the first three quarters, Catcher’s net income was NT$7.82 billion, down 62.84 percent annually, or EPS of NT$10.15. Gross margin decreased 18.05 percentage points to 23.7 percent, while operating margin dropped 18.68 percentage points to 14.01 percent from a year earlier, it said.
[FULL  STORY]

Taipei Expo opens in Philippines to explore business opportunities

Taiwan believes Southeast Asian country has unlocked potential

Taiwan News
Date: 2019/11/08
By: Huang Tzu-ti, Taiwan News, Staff Writer

Taipei Expo opens in the Philippines (TAITRA photo)

TAIPEI (Taiwan News) — Taiwan Expo 2019 opened at the SMX Convention Center in Davao, the Philippines on Friday (Nov. 8) as part of the island’s bid to increase its commercial clout in the Southeast Asian country.

Co-organized by the Bureau of Foreign Trade and the Taiwan External Trade Development Council (TAITRA), the showcase spotlights 100 companies from Taiwan, reported China Times. The event will focus on introducing the island’s agricultural and fishery technologies to the city of Davao, which boasts fertile land and rich aquatic resources.    [FULL  STORY]

HTC brings VR to Adidas’ design, development processes

Focus Taiwan
Date: 2019/11/09
By: Jiang Ming-yan and Frances Huang

Taipei, Nov. 9 (CNA) Taiwan-based smartphone brand HTC Corp., which had become a leader in the virtual reality business, has been working with the German footwear company Adidas to optimize its design and production process.

Using its VIVE VR System and The Wild software, HTC said, it has helped Adidas create a virtual space to asses, test and change designs, all in a 3D process.

The shared virtual space allows Adidas teams to save time and make better decisions as they work together on products, HTC said.

As a result of the faster product storytelling and assessment, the process has also become more cost-effective for the footwear company, HTC said.    [FULL  STORY]

Next-generation protein could come from air or volcanic springs

As the alternative meat industry sees explosive growth, start-ups are developing innovative ways to turn untapped resources into new products — and reduce humanity’s carbon footprint

Taipei Times
Date:  Nov 10, 2019
By: Thin Lei Win  /  Thomson Reuters Foundation, ROME

It might sound like science fiction, but in a few short years the family dinner table could be laden with

Packages of beef are displayed for sale beside Impossible Burger Inc plant-based meat products at a grocery store in Los Angeles on Sept. 20.
Photo: Bloomberg

steak from a printer and other proteins produced from air, methane or volcanic microbes.

With the explosive success of vegan beef and burger substitutes developed by Beyond Meat Inc and Impossible Foods Inc, the alternative protein sector just keeps growing.

Alternative meat sales could reach US$140 billion — or 10 percent of the global meat industry — within a decade, or a 10-fold increase from current levels, Barclays PLC said.

A new generation of products in the works melds cutting-edge technology with age-old fermentation processes to turn otherwise harmful or everyday elements into essential food ingredients, with the aim of reducing agriculture’s massive carbon footprint.    [FULL  STORY\]

Taiwan businesses will still return even if U.S.-China trade war ends: MOEA

Returning Taiwanese investment to reach NT$700 billion next week: minister

Taiwan News
Date: 2019/11/08
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Despite rising optimism about an eventual agreement to end the trade war

Economics Minister Shen Jong-chin. (CNA photo)

between the United States and China, Economics Minister Shen Jong-chin (沈榮津) still believed that Taiwanese businesses would continue their present policy of seeking alternatives to China and returning to the island.

The government’s policy of encouraging such moves has so far netted investment agreements totaling almost NT$700 billion (US$23 billion), a threshold likely to be crossed next week, with a year-end target of NT$800 billion, the Liberty Times reported.
[FULL  STORY]