Stocks fell for a second day yesterday. Taiwan Semiconductor Manufacturing Co (TSMC,
The TAIEX shed 19.60, or 0.3 percent, to 6,041.86. Almost the same number of stocks rose as fell. The futures index shed 0.4 percent to 6,051. About 5.2 billion shares changed hands, 24 percent above the daily average in the past three months.
TSMC dropped NT$1, or 1.5 percent, to NT$66. It plans to grant the stock options as a bonus, TSMC spokesman Tseng Jin-hao (曾晉皓) said in a phone interview.
TSMC on Tuesday hired Merrill Lynch & Co and Goldman Sachs Group Inc to help sell shares worth as much as US$1.14 billion that are currently held by Royal Philips Electronics NV.
"Taiwan Semiconductor's plans to grant stock options and sell shares overseas will create a massive influx of shares in the market," said Yu Reming, a fund manager at Prudential Securities Investment Trust Co (
Chi Mei Optoelectronics Corp (奇美電子) fell as much as 0.7 percent before closing unchanged at NT$45.10 after it sold US$573 million of shares overseas at a 4 percent discount to the stock's closing price on Tuesday.
Compeq Manufacturing Co (華通電子) fell NT$0.50, or 2.8 percent, to NT$17.60 after it said it is "reviewing" its loss forecast for this year after the Central News Agency reported it may widen its losses for the year. Compeq declined to comment on the report, saying the company had a NT$2.9 billion loss in the first nine months, compared with the NT$1.9 billion full-year net loss it projected for the year.
Taiwan Life Insurance Co (台灣人壽) gained NT$3, or 6.3 percent, to NT$51.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s