The nation's chief financial regulator yesterday told legislators a probe into alleged insider trading by siblings Thomas Wu (
The two Wu brothers are fighting for control of Shinkong Synthetic Fibers Corp (
"We'll launch an investigation if there are any irregularities," Financial Supervisory Commission (FSC) Chairman Kong Jaw-sheng (龔照勝) told the legislature's finance committee.
Kong made the remarks after DPP Legislator Lin Wen-lang (林文郎) accused Thomas Wu of dumping over 90 million shares of Taishin Financial Holding Co (台新金控), owned by the fiber-maker, hours before the Ministry of Economic Affairs ruled last Wednesday that his younger brother Eric Wu should be the lawful chairman of Shinkong Synthetic Fibers.
Thomas Wu then bought back the shares through three subsidiary companies, a move which market insiders believe was aimed at preventing Eric Wu from buying more shares in Taishin Financial in the future, should the ministry's ruling designate him as chairman of Shinkong Synthetic Fibers.
The fiber-maker owned a 5 percent stake in Taishin Financial.
Thomas Wu is currently chairman of Taishin Financial, while his elder brother Eugene Wu (
The DPP's Lin also accused Eric Wu, who is a Taiwan Solidarity Union legislator and chairman of Taiwan Securities Co (
Taiwan Securities bought over 120 million shares of Shinkong Synthetic Fiber last Wednesday, when the ministry ruled that he was the fiber company's lawful chairman.
Boost performance?
It is speculated that Eric Wu bought the fiber company's shares to boost its stock performance and to celebrate the final ruling that he would take over the chairmanship from his elder brother.
Despite the family squabble, shares of Shinkong Synthetic Fibers have continued to climb, rising from NT$6 per share in early August, to NT$9.35 per share yesterday -- an increase of nearly 50 percent.
"As long as the firm's financial portfolio is healthy, the dispute over its leadership shouldn't have too much impact," according to one stock analyst, who refused to be identified.
"On the contrary, the fiber company's shares have performed pretty well, since there may be efforts to boost it," he added.
Although Thomas Wu vowed to dispute the ministry's decision last week, the fiber company's new board met yesterday and agreed that the firm will be temporarily headed by the Wus' mother, Wu Kuei-lan (
Last week, the ministry ruled that the old board, which had elected Thomas Wu as chairman, should have been reshuffled.
As such, no chairman elected by the old board was legitimate since a letter of re-assignment had arrived before the board meeting on Aug. 6.
The Taiwan Automation Intelligence and Robot Show, which is to be held from Wednesday to Saturday at the Taipei Nangang Exhibition Center, would showcase the latest in artificial intelligence (AI)-driven robotics and automation technologies, the organizer said yesterday. The event would highlight applications in smart manufacturing, as well as information and communications technology, the Taiwan Automation Intelligence and Robotics Association said. More than 1,000 companies are to display innovations in semiconductors, electromechanics, industrial automation and intelligent manufacturing, it said in a news release. Visitors can explore automated guided vehicles, 3D machine vision systems and AI-powered applications at the show, along
AI SERVER DEMAND: ‘Overall industry demand continues to outpace supply and we are expanding capacity to meet it,’ the company’s chief executive officer said Hon Hai Precision Industry Co (鴻海精密) yesterday reported that net profit last quarter rose 27 percent from the same quarter last year on the back of demand for cloud services and high-performance computing products. Net profit surged to NT$44.36 billion (US$1.48 billion) from NT$35.04 billion a year earlier. On a quarterly basis, net profit grew 5 percent from NT$42.1 billion. Earnings per share expanded to NT$3.19 from NT$2.53 a year earlier and NT$3.03 in the first quarter. However, a sharp appreciation of the New Taiwan dollar since early May has weighed on the company’s performance, Hon Hai chief financial officer David Huang (黃德才)
FORECAST: The greater computing power needed for emerging AI applications has driven higher demand for advanced semiconductors worldwide, TSMC said The government-supported Industrial Technology Research Institute (ITRI) has raised its forecast for this year’s growth in the output value of Taiwan’s semiconductor industry to above 22 percent on strong global demand for artificial intelligence (AI) applications. In its latest IEK Current Quarterly Model report, the institute said the local semiconductor industry would have output of NT$6.5 trillion (US$216.6 billion) this year, up 22.2 percent from a year earlier, an upward revision from a 19.1 percent increase estimate made in May. The strong showing of the local semiconductor industry largely reflected the stronger-than-expected performance of the integrated circuit (IC) manufacturing segment,
COLLABORATION: Softbank would supply manufacturing gear to the factory, and a joint venture would make AI data center equipment, Young Liu said Hon Hai Precision Industry Co (鴻海精密) would operate a US factory owned by Softbank Group Corp, setting up what is in the running to be the first manufacturing site in the Japanese company’s US$500 billion Stargate venture with OpenAI and Oracle Corp. Softbank is acquiring Hon Hai’s electric-vehicle plant in Ohio, but the Taiwanese company would continue to run the complex after turning it into an artificial intelligence (AI) server production plant, Hon Hai chairman Young Liu (劉揚偉) said yesterday. Softbank would supply manufacturing gear to the factory, and a joint venture between the two companies would make AI data
RSS