Stocks fell yesterday, led by Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) and AU Optronics Corp (友達光電).
The TAIEX shed 12.88, or 0.2 percent, to close trading at 6,089.28. About six stocks gained for every five that declined. Index futures for October delivery fell 0.3 percent to 6,118.
China Airlines (華航) fell 3.2 percent to NT$18.20. EVA Airways Corp (長榮) fell 2.9 percent to NT$14.85. China rejected President Chen Shui-bian's (陳水扁) call for talks because he stopped short of acknowledging that Taiwan and China are one country, the government-owned China Daily reported yesterday.
"All the talk about Chen's upcoming major speech generated investor optimism that Taiwan will soon start full-fledged direct links with China," said Tom Fu, a fund manager at PCA Securities Investment Trust Co, which manages NT$124 billion in Taiwan.
"The reality is political issues will not be resolved simply by speeches," he said.
TSMC, the world's largest supplier of made-to-order computer chips, fell 1.2 percent to NT$42.80. AU Optronics, the nation's largest maker of flat-panel displays used in computers and televisions, fell 3.5 percent to NT$43.60.
Delta Electronics Inc (台達電子) fell 2.2 percent to NT$49.90 after Dell Inc, the world's largest seller of personal computers, recalled 4.4 million notebook computer power adapters made by Delta Electronics because they may catch fire.
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure