Business and Finance

FPG units see revenue increase 4%

GLOOMY OUTLOOK: The utilization rate at FPCC’s factories reached 90 percent as one of its factories completed maintenance, while Nan Ya benefited from BPA sales

Taipei Times
Date: Nov 06, 2019
By: Lisa Wang  /  Staff reporter

Formosa Plastics Group’s (FPG, 台塑集團) four major subsidiaries yesterday said combined

From left, Formosa Plastics Corp (FPC) senior vice president Jerry Lin, FPC chairman Jason Lin, Nan Ya Plastics Corp chairman Wu Chia-chau and Formosa Chemicals and Fibre Corp vice chairman Hung Fu-yuan attend a news conference in Taipei yesterday to announce the profit of the Formosa Group’s four major units for last month.
Photo: CNA

revenue last month increased 4 percent month-on-month thanks to higher shipments as some factories resumed production following regular maintenance.

However, weak prices and excessive inventory continued to take a toll on the companies. Overall revenue at the four subsidiaries tumbled 22 percent year-on-year from NT$151.53 billion to NT$117.25 billion (from US$4.99 billion to US$3.86 billion).

Global crude oil prices are likely to extend an uptrend until the end of this year, but the outlook for next year is gloomy, Chinese-language Unique Satellite TV quoted Formosa Petrochemical Co (FPCC, 台塑石化) president Tsao Minh (曹明) as saying.

“Overall market demand does not look good for the first quarter of next year. Crude oil prices are likely to fall [again],” Tsao said.    [FULL  STORY]

China offers more access for Taiwan firms, Taiwan warns of a trap

Reuters
Date: November 4, 2019

BEIJING/TAIPEI (Reuters) – China unveiled measures on Monday to further open its markets to firms from self-ruled Taiwan, including capital raising, as Taiwan warned its people not to be taken in by moves at “enticement” ahead of a January presidential election.

China claims democratic Taiwan as its own and has stepped up pressure on the strategically located island since President Tsai Ing-wen assumed office in 2016, fearing she wishes to push for its formal independence, a red line for Beijing.

As well as flying regular patrols of air force jets around Taiwan and forcing foreign companies to refer to Taiwan as part of China on their websites, Beijing has targeted Taiwanese firms in what it says are steps to make their life easier in China.

Taiwan says this has political aims.    [FULL  STORY]

Taiwan’s TSMC denies report US asked it not to sell chips to Huawei

World's largest contract chipmaker says shipments made in full compliance with regulations

Taiwan News
Date: 2019/11/04
By: Sophia Yang, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, said it has never been asked not to ship chips to Huawei and that all shipments have been made in full compliance with regulations.

The Financial Times reported on Monday (Nov. 4) the U.S. government has over the past year repeatedly requested Taiwan's government restrain the Hsinchu-based company from selling chips to Huawei. Also, a U.S. official was said to have warned Taiwanese diplomats last month the chips "were going straight into Chinese missiles pointing at Taiwan."

In response, TSMC said it has not received requests from either government to stop exporting chips to Huawei. It added that its business operates in full compliance with the law.

Last year, Huawei was identified as a security threat by many governments for its alleged close ties with the Communist Party of China. However, the company claims it would never hand data to Chinese authorities.    [FULL  STORY]

TAITRA head meets with U.S. officials in Bangkok to promote trade ties

Focus Taiwan
Date: 2019/11/04
By: Liao Yu-yang and Evelyn Kao

Taiwan External Trade Development Council (TAITRA), James Huang (黃志芳, third left) and the United States Under Secretary of State for Economic Growth, Energy, and the Environment, Keith Krach (fourth left).

Taipei, Nov. 4 (CNA) The head of the government-sponsored Taiwan External Trade Development Council (TAITRA), James Huang (黃志芳), met with economic officials from the United States and U.S. business representatives in the Asia Pacific region to promote bilateral economic and trade cooperation on the sidelines of the Indo-Pacific Business Forum 2019 in Bangkok Monday.

Invited by the American Institute in Taiwan (AIT), Huang led a Taiwanese delegation to the forum co-organized by the U.S. Chamber of Commerce and the Thai Chamber of Commerce, TAITRA said a statement issued that day.

Accompanied by Brent Christensen, director of AIT's Taipei office, Huang met with the United States Under Secretary of State for Economic Growth, Energy, and the Environment, Keith Krach; Deputy Assistant Secretary for Asia at the U.S. Department of Commerce, Diane Farrell; and Executive Vice President of the Overseas Private Investment Corporation (OPIC), David Bohigian, according to the statement.

During the meeting, Huang also thanked several U.S. government agencies for jointly sending a letter to the 500 largest companies in the U.S. to encourage them to invest in Taiwan.
[FULL  STORY]

Lite-On’s net profit jumps 18 percent

THIRD-QUARTER RESULTS: The company blamed a 10 percent drop in revenue on its solid-state drive business, which it is selling to Toshiba Memory Holdings

Taipei Times
Date: Nov 05, 2019
By: Natasha Li  /  Staff reporter

Electronic components supplier Lite-On Technology Corp (光寶科技) yesterday reported that net profit grew 18 percent year-on-year to NT$3.11 billion (US$102.29 million) last quarter, translating into earnings per share of NT$1.34 — the most in three years.

Gross margin and operating margin increased to 16.2 percent and 6.7 percent from 15.8 percent and 6.2 percent respectively, due to operational efficiency, better supply-chain management and an improved product mix, the company said.

However, third-quarter revenue dropped 10 percent year-on-year to NT$48.16 billion, as Lite-On’s three main business segments experienced declines.

Revenue from the company’s storage segment, which contributed 13 percent of total revenue last quarter, declined 35.43 percent annually to NT$6.25 billion, company data showed.
[FULL  STORY]

Fuel prices in Taiwan to remain unchanged this week

Focus Taiwan
Date: 2019/11/03
By: Liao Yu-yang and Chiang Yi-ching

Taipei, Nov. 3 (CNA) Taiwan's two major fuel suppliers on Sunday announced that their gasoline and diesel prices will remain unchanged in the coming week after conflicting factors kept international crude prices relatively steady.

The prices at state-run CPC Corp. Taiwan gas stations will remain NT$26.4 per liter for 92 octane unleaded, NT$27.9 per liter for 95 unleaded, NT$29.9 per liter for 98 unleaded and NT$24.2 per liter for super diesel.

CPC said that while easing trade tensions between the U.S. and China resulted in a rise in international oil prices this past week, other factors, including a higher commercial oil inventory in the U.S., offset the increase.

CPC adjusts its fuel prices weekly based on changes in crude oil prices calculated using a weighted oil price formula composed of 70 percent Dubai crude and 30 percent Brent crude.   [FULL  STORY]

DBS raises GDP forecast to 2.3 percent

BEATING FORECASTS: In the first three quarters, Taiwan beat its regional peers, including South Korea and Singapore, with GDP growth averaging 2.4 percent

Taipei Times
Date: Nov 04, 2019
By: Chen Cheng-hui  /  Staff reporter

DBS Bank Ltd (星展銀行) has revised upward its GDP growth forecast for Taiwan this year to 2.3 percent, from 1.9 percent earlier this year, as the economy stands to benefit from the “trade diversion and investment repatriation effects” of the trade tensions between the US and China, as well as a recovery in the electronics sector.

The Singaporean bank also adjusted its economic growth forecast for Taiwan next year to 2 percent, up from 1.8 percent previously, a report released on Friday showed.

The bank’s GDP forecast came after Taiwan’s economy grew 2.91 percent annually in the third quarter, its strongest growth in five quarters, as exports regained traction from transferred orders, and rising domestic consumption and investment also lent support, the Directorate-General of Budget, Accounting and Statistics reported on Thursday.

Third-quarter GDP expanded more than the 2.41 percent growth seen in the second quarter and beat its forecast of about 2.5 percent, DBS said.    [FULL  STORY]

5 Taiwanese products receive 2019 R&D 100 Awards

Taiwan News
Date: 2019/11/02
By  Central News Agency

ITRI Facebook photo

Five cutting-edge products and technologies developed by institutes affiliated with the Ministry of Economic Affairs (MOEA) have been announced as winners of the 2019 R&D 100 Awards to be presented at an event in San Francisco on Dec. 5.

The products and technologies were developed by the Industry Technology Research Institute (ITRI), the Institute for Information Industry (III), Metal Industries Research & Development Centre (MIRDC) and Taiwan Textile Research Institute (TTRI) with support from the MOEA's Department of Industrial Technology.

In a statement issued Friday, ITRI said it won two awards for its RAIBA, Reconfigurable and Regulatable Battery Array System, and the bionic knobby magnetic beads manufacturing technology iKNOBEADS.

According to ITRI, both technologies are world leaders and expected to provide solutions for society and industries, while also creating new business opportunities for green energy and precision medicine.    [FULL  STORY]

TSMC to give employees NT$468 million in sports day bonuses

Focus Taiwan
Date: 2019/11/02
By: Chang Chien-chung and Frances Huang

Taipei, Nov. 2 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract

Morris Chang (張忠謀, right)\

chipmaker, announced at its annual Sports Day on Saturday that it will give NT$$468 million (US$15.34 million) in bonuses to its employees.

Expressing gratitude to employees for their contributions, TSMC Chairman Mark Liu (劉德音) said at the event in Hsinchu, where TSMC is headquartered, that it will give each of its roughly 39,000 employees who were with TSMC as of May 31 a bonus of NT$12,000.

The total payout, expected to be disbursed in December, will reach about NT$468 million, TSMC said.

The company's Sports Day is a favorite among TSMC employees because they generally receive a bonus. This year's amount per employee was the same as last year's.    [FULL  STORY]

Manufacturing PMI picks up: CIER

EXPANSION: After contracting since April and coming in flat in September, the index increased to 51.1 last month, driven by suppliers of food and textiles, the institute said

Taipei Times
Date: Nov 02, 2019
By: Crystal Hsu  /  Staff reporter

The official manufacturing purchasing managers’ index (PMI) last month expanded for the first time since April, as food and textiles fared well, thanks to the high season and demand leading up to next year’s Tokyo Olympics, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.

Last month’s PMI reading of 51.1 indicated a business pickup for the nation’s manufacturing sectors, although companies engaged in the supply of raw materials, transportation tools, as well as electricity and machinery equipment remained in the woods.

Figures larger than 50 indicate an expansion, while values below the threshold suggest a contraction.

Manufacturing PMI was flat last month at 50.    [FULL  STORY]