Despite a tepid response from investors since the presidential election, publicly-listed companies reported total revenues of NT$2.06 trillion in the first quarter of the year, a 26.9 percent rise from a year ago, according to a recent report by the Directorate General of Budget, Accounting and Statistics (DGBAS). \nThe nation's top number crunchers said that the net income of these companies hit NT$307.1 billion, a 118 percent jump from the same period last year. \nDGBAS attributed the surge in companies' revenues to the global economic recovery since the fourth quarter of last year -- which has boosted domestic demand -- and the red-hot Chinese economy. China's economic growth is expected to top a 9 percent annual rate for the first half of this year, a factor which has pushed forward its exports of raw materials to countries in the region. \nThe electronics industry, which accounts for 55.7 percent of all public companies in Taiwan, topped the money-making chart with revenues of NT$1.14 trillion in the first quarter, a 33.8 percent increase from a year ago, DGBAS reported. \nIt was followed by plastics companies, with NT$193.2 billion in total revenues and 28.7 percent year-on-year growth rate. The finance and insurance sector ranked third, shoveling in NT$160.8 billion in revenues, a 27 percent increase from the same period last year. \nOther industries that enjoyed high revenue growth include the automobile manufacturing sector, which marked a 29.9 percent increase and the steelmaking industry, which reported a 22-percent advance in revenues due to soaring prices. \nConstruction materials firms also saw an upturn, having suffered from the recession last year. \nThe firms reported NT$23.4 billion in revenues during the first quarter and a 6.6 percent growth rate, owing to the recovery and the initiation of major public construction projects, DGBAS said. \nHowever, bearing the brunt of the depressing factors of the presidential election and the post-election row, the tourism industry made only NT$1.8 billion, a 2.3 percent drop from a year ago. \nThe government is counting on surging exports and domestic demand to drive economic growth, which DGBAS predicts will accelerate to 5.41 percent this year from 3.24 percent last year.
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
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
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,