After recovering NT$8.23 billion (US$238 million) from Kaohsiung Business Bank's (高雄企銀) NT$21.7 billion-worth bad loans, the government plans to hold another auction before the middle of September to sell off the troubled bank. \n"So far, at least three local financial institutions have expressed interest in acquiring the bank," said Johnson Chen (陳戰勝), president of Central Deposit Insurance Corp (CDIC, 中央存保), the custodian of the bank since January last year. \nThe lender, which operates 44 branches nationwide, has about NT$80 billion in its saving accounts and about NT$40 billion in remaining assets after writing off NT$21.7 billion in impaired assets. \nChen made the comment yesterday morning at a ceremony where the Texas-based Lone Star Asia-Pacific Ltd inked a deal to buy the Kaohsiung bank's bad loans. \nThe Lone Star deal achieved a 37.8 percent recovery rate in bad loans, which is relatively higher than the averaged 20 percent to 25 percent rate of similar deals. \n"It means that the local economy has gradually warmed up to boost selling prices of these bad loans," Chen said. \nLauding the CDIC's success in writing off Kaohsiung Bank's bad loans, Minister of Finance Lin Chuan (林全) yesterday said that the bidding has set a good example for the government to deal with for other failed banks. \n"The model, based on the principle of market mechanism, attracted several enthusiastic competitors," Lin said. \nThis is the first time the government has succeeded in separating a troubled bank's bad assets from its good assets in order to sell them. The government plans to hold an auction of the bank's remaining operations, assets and liabilities, after obtaining approval from lawmakers in the next legislative session.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be