The Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) said yesterday it will pay Eurotrain US$65 million in compensation for dumping the consortium and choosing a Japanese consortium to build Taiwan's high-speed rail system.
THSRC posted the settlement agreement on the Taiwan Stock Market online bulletin board.
"Following arbitration by an international arbitration court, THSRC agrees to pay US$65 million to Eurotrain, which -- plus interest -- totals US$89 million," the document said.
THSRC's press office said the arbitration was made on March 5 by an international arbitration court in Singapore.
Compared with an arbitration ruled by the International Chamber of Commerce (ICC) early this year, the new settlement saves THSRC US$24 million, according to THSRC. Eurotrain filed for arbitration with the ICC in 2001.
The ICC issued an arbitration award on March 15, 2004, wherein THSRC was ordered to pay US$73.04 million in damages and interest to Eurotrain.
Eurotrain -- a consortium led by Germany's Siemens AG and France's Alsthom -- claims THSRC gave it priority negotiating rights for building Taiwan's first high-speed rail in 1997, but awarded the US$14-billion-contract to a Japanese consortium in 1999. But THSRC denied there was any contract.
The 345km railway linking Taipei to Kaohsiung is scheduled to start operating in October next year.
There were rumors that THSRC favored Japan's Shinkansen system over Eurotrain because former president Lee Teng-hui (李登輝) wanted to forge closer ties with Japan, but THSRC denied there were political considerations.
WASHINGTON’S INCENTIVES: The CHIPS Act set aside US$39 billion in direct grants to persuade the world’s top semiconductor companies to make chips on US soil The US plans to award more than US$6 billion to Samsung Electronics Co, helping the chipmaker expand beyond a project in Texas it has already announced, people familiar with the matter said. The money from the 2022 CHIPS and Science Act would be one of several major awards that the US Department of Commerce is expected to announce in the coming weeks, including a grant of more than US$5 billion to Samsung’s rival, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), people familiar with the plans said. The people spoke on condition of anonymity in advance of the official announcements. The federal funding for
HIGH DEMAND: The firm has strong capabilities of providing key components including liquid cooling technology needed for AI servers, chairman Young Liu said Hon Hai Precision Industry Co (鴻海精密) yesterday revised its revenue outlook for this year to “significant” growth from a “neutral” view forecast five months ago, due to strong demand for artificial intelligence (AI) servers from cloud service providers. Hon Hai, a major assembler of iPhones that is also known as Foxconn, expects AI server revenues to soar more than 40 percent annually this year, chairman Young Liu (劉揚偉) told investors. The robust growth would uplift revenue contribution from AI servers to 40 percent of the company’s overall server revenue this year, from 30 percent last year, Liu said. In the three-year period
LONG HAUL: Largan Energy Materials’ TNO-based lithium-ion batteries are expected to charge in five minutes and last about 20 years, far surpassing conventional technology Largan Precision Co (大立光) has formed a joint venture with the Industrial Technology Research Institute (ITRI, 工研院) to produce fast-charging, long-life lithium-ion batteries for electric vehicles, mobile electronics and electric storage units, the camera lens supplier for Apple Inc’s iPhones said yesterday. Largan Energy Materials Co (萬溢能源材料), established in January, is developing high-energy, fast-charging, long-life lithium-ion batteries using titanium niobium oxide (TNO) anodes, it said. TNO-based batteries can be fully charged in five minutes and have a lifespan of 20 years, a major advantage over the two to four hours of charging time needed for conventional graphite-anode-based batteries, Largan said in a
Taiwan is one of the first countries to benefit from the artificial intelligence (AI) boom, but because that is largely down to a single company it also represents a risk, former Google Taiwan managing director Chien Lee-feng (簡立峰) said at an AI forum in Taipei yesterday. Speaking at the forum on how generative AI can generate possibilities for all walks of life, Chien said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) — currently among the world’s 10 most-valuable companies due to continued optimism about AI — ensures Taiwan is one of the economies to benefit most from AI. “This is because AI is