Taiwan host to 96 multinationals \n \nA total of 96 multinational enterprises have established operation centers in Taiwan and the number is estimated to rise to 600 by 2007, with a total investment of NT$1.25 trillion, Ho Mei-yueh (何美玥), vice chairwoman of the Cabinet-level Council for Economic Planning and Development, told lawmakers Tuesday. \nMultinationals with revenues of more than NT$1 billion from their operations in Taiwan and which employ a monthly average of not less than 100 employees, while their overseas subsidiaries have revenues of more than NT$100 million, are qualified to apply to establish an operations center in Taiwan, Ho said. \nIf the target set for 2007 is achieved, the operation centers will create annual revenues of NT$743 billion and create 87,000 job opportunities, Ho predicted. \nMoney supply rose last month \n \nTaiwan's money supply rose 2.86 percent in November from a year earlier, reversing six months of deceleration, as foreign capital inflow increased and gains in foreign exchange proceeds from overseas sales. \nM2, the broadest measure of money supply, rose 2.86 percent from a year earlier, following a 2.52-percent increase in October, the central bank said in a statement. M2 measures currency in circulation, checking and savings accounts, and money-market funds. \nExport orders increasing \n \nThe continued growth of export orders may help boost the nation's gross domestic product growth rate this year, an official at the Ministry of Economic Affairs said yesterday. \nTaiwan registered US$13.42 billion worth of export orders in November, an increase of 13.83 percent from a year earlier and the eighth consecutive month of double-digit growth, the ministry reported Tuesday. \nChang Yaw-tzong (張耀宗), director-general of the ministry's statistics department, said that the economic growth rate of 3.27 percent this year forecast by the Directorate General of Budget, Accounting and Statistics (DGBAS) still has room for upward adjustment, due to the increase in export orders. \nChina may miss wheat target \n \nChina's wheat imports next year will probably fall short of the target pledged to the World Trade Organization as the government uses reserves to meet demand in the world's biggest grain market. \nChina's wheat imports in 2003 probably won't exceed the estimated 700,000 metric tons the government expects to import for this year, the trade ministry said in a report. \nChina this year pledged to import 8.5 million tons of wheat at a 1 percent preferential tariff rate. The import target will rise to 9.1 million tons next year. \nFormosa to set up plant in China \n \nFormosa Plastics Group (台塑集團) plans to set up a tire plant in China at a cost of NT$2 billion (US$57.4 million), it was reported yesterday. \nThe plant would produce up to 20,000 tires a day to meet demand from the group's wholly-owned Formosa Automobile Corp (台塑汽車), which is expected to set up a joint venture with General Motors Taiwan next year, a local newspaper said. \nFormosa Automobile produces two Daewoo Motor-designed models in Taiwan. \nNT dollar down slightly \n \nThe New Taiwan dollar yesterday continued to lose ground against its US counterpart amid light trading, falling NT$0.02 to close at NT$34.85 on the Taipei foreign exchange market. \nTurnover was US$134 million, compared with the previous day's US$297 million.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a