Hua Nan plans acquisition
Hua Nan Financial Holdings Co (華南金控), which owns the nation's fifth-largest bank by assets, said it agreed to acquire Asia Securities Inc (亞洲證券) in a share swap.
Hua Nan will decide how many shares will be exchanged after reviewing the brokerage's finances, said Ed Liu (劉茂賢), vice president at Hua Nan.
At yesterday's closing price, Asia Securities had a market value of NT$3.38 billion (US$99 million).
Hua Nan has about a 2.8 percent market share of the nation's brokerage industry and Asia Securities has about 1.1 percent, Liu said.
Asia Securities, which has 10 outlets, reported a net loss of NT$171 million for the six months ended in June.
The brokerage had a profit last month and is expected to report net income for the eight months ending this month, Asia Securities spokesman Yang Mingo said, without providing figures.
Money supply skyrockets
The nation's money supply grew last month at its fastest pace in a year on increased demand from overseas stock investors and increased foreign-exchange earnings from exports, according to the central bank.
M2, the broadest measure of the money supply, grew 3.3 percent from a year earlier after expanding 2.9 percent in June, the bank said in a statement in Taipei.
Powerchip, Elpida sign pact
Powerchip Semiconductor Corp (力晶半導體), the country's third-largest maker of computer memory chips, said it signed an agreement to acquire new semiconductor-making technology from Japan's Elpida Memory Inc.
The technology will help Powerchip speed the introduction of new products, the company said in an e-mailed statement. No financial terms were disclosed.
Under the agreement, Powerchip will acquire Elpida's 0.09-micron chipmaking technology by early 2005. The technology will enable Powerchip to make more chips per silicon wafer, helping to cut costs.
Powerchip and Elpida, a memory chip venture between NEC Corp and Hitachi Ltd, signed an agreement on March 5 under which the Hsinchu-based company will sell as much as half of the production from its newest plant to Elpida.
Quanta profit up 60 percent
Quanta Computer Inc (廣達電腦), the world's largest notebook computer maker, said its second-quarter profit rose 60 percent to NT$3.2 billion from NT$2 billion a year ago. Sales rose 95 percent to NT$65.3 billion.
Quanta said its gross profit margin fell to 5.7 percent in the second quarter from 7.8 percent a year ago as prices fell.
Asustek profits may jump
Asustek Computer Inc (華碩電腦), the world's largest maker of motherboards, may say that its second-quarter profit more than doubled after price competition waned.
Net income probably rose 133 percent to NT$2.8 billion (US$82 million) from NT$1.2 billion a year earlier, analysts estimated.
Profit soared because Intel Corp, the world's biggest chipmaker, released fewer new computer chips, which helped Asustek and rivals to simplify their product lines and avoid excess production, said Ben Lee (李輔邦), an analyst with Nomura Securities Co.
"Motherboard makers had high inventories last year," Lee said. "Price competition was severe."
Asustek has more than 25 smaller rivals in Taiwan, which accounts for about two-thirds of world supply.
Taiwan dollar gains ground
The New Taiwan dollar yesterday continued gaining ground against its US counterpart, rising NT$0.037 to close at NT$34.180 on the Taipei foreign exchange market. Turnover was US$536 million.
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