Formosa Plastics Group (台塑集團) and United Microelectronics Corp (UMC, 聯電) topped the nation's 241 conglomerates last year to become the largest business groups in the traditional and high-tech sectors respectively, a study conducted by the China Credit Information Service Ltd (CCIS, 中華徵信所) found yesterday.
Among other conglomerates, Formosa reported the highest sales of NT$721 billion, the highest after-tax revenues of NT$25.4 billion and the highest net profit of NT$661 billion while hiring a total of 75,842 employees last year, CCIS president David Chang (張大為) told a press conference.
In terms of assets, Lin Yuan Group (霖園集團) and Mega Financial Holding Co (兆豐金控) exceeded that of Formosa Plastics to be the nation's top two companies with assets of NT$2.12 trillion and NT$1.67 trillion respectively, Chang said.
The remaining seven conglomerates on the top-10 list with the highest assets were all financial holding companies including state-controlled First Financial Holding Co (第一金控), Hua Nan Financial Holdings Co (華南金控) and Shin Kong Group (新光集團), which respectively owned NT$1.42 trillion, NT$1,37 trillion and NT$1.29 trillion in assets last year.
Both Shin Kong Financial Hol-ding Co (新光金控) and Taishin Fi-nancial Holdings Co (台新金控) are subsidiaries of the Shin Kong Group.
Following the passage of the Financial Holding Company Act (
Fourteen financial holding companies have been established here but the sector is expected to experience further consolidation over the next two to three years, Chang said.
"Ideally, for a small market like Taiwan, the top seven players should be further consolidated into three to five financial holding companies," he said.
While these financial holding companies have yet to fully realize the potential benefits of the synergies likely to result -- given the sector's short history of less than two years, they will be coveting the Greater China market and Chinese yuan businesses to expand their market shares in the near future, Chang said.
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