Hon Hai to buy Ambit
Hon Hai Precision Industry Co (鴻海精密), Taiwan's largest electronics manufacturer, agreed to buy Ambit Microsystems Corp (國電) for NT$36.7 billion (US$1.08 billion) in stock to expand its notebook computer business.
Hon Hai will exchange 0.672 of a share for one Ambit share, the companies said in a statement to the Taiwan Stock Exchange.
The ratio represents a 12 percent premium to Ambit's closing share price today of NT$92.50.
Ambit, a company that was spun off by Taiwan computer maker Acer Inc, makes parts for notebook computers such as modems and power converters. Hon Hai said the acquisition will help lower its production costs.
BenQ Expects 40% rise in sales
BenQ Corp (明基電通), Taiwan's biggest brand-name seller of electronics, expects fourth-quarter sales to rise at least 40 percent from a year ago on strong demand for flat-panel televisions and notebook computers, a Chinese-language newspaper said, citing Chairman Lee Kun-yao (李焜耀).
The company's fourth-quarter sales a year ago were NT$25.7 billion (US$755.6 million).
The company on Oct. 29 posted a 59 percent jump in third-quarter profit, aided by demand for flat displays and optical-disk related products. Net income in the three months ended Sept. 30 rose to NT$2.23 billion ($66 million) from NT$1.40 billion a year ago.
Broadband use rises
As of the end of September, there are 2.7 million households using broadband service to access the Internet, a 10 percent increase from the last quarter, according to a survey released yesterday by the Institute for Information Industry.
The main reason for the rise in broadband users is the lowering of connection fees over the summer, the institute said. Currently, the set-up fee for bradband services is around NT$700, with monthly charges starting at NT$499. In addition, a user's fee is charged depending on the time spent online.
The survey further found that digital subscriber line use is on the rise, with 89 percent of broadband users using this kind of system. Others use cable modems, integrated services digital network (ISDN) and T1 high-speed access, the survey said.
Taichung EPZ revenues up
Accumulated revenues from the Taichung Export Processing Zone in the first nine months of this year amounted to NT$28.5 billion (US$838.2 million), up 9 percent from the previous year's level, according to statistics released Wednesday.
Turnover recorded by precision machinery manufacturers during the January-September period reached NT$17.6 billion, accounting for 62 percent of the total amount, while business revenues from electric and electronic appliances amounted to NT$9 billion, representing 31 percent of the total, the statistics showed.
Travel fair aims at tourists
The 2003 Taipei International Travel Fair will be held in the Taipei World Trade Center Exhibition Hall on Nov. 15-18 with exhibitors from more than 40 countries participating.
A spokesman for the Taiwan Visitors Association (台灣觀光協會) said Thursday that the travel fair is aimed at attracting Taiwan tourists. Some 85,000 people visited the travel fair in Taipei last year.
The Taiwan tourist market is considered lucrative, because seven million Taiwan people go abroad for sight-seeing each year, he said.
NT dollar falls
The New Taiwan dollar yesterday traded lower against its US counterpart, declining NT$0.002 to close at NT$34.020 on the Taipei foreign exchange market.
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