AU Optronics opens G6 fab \n \nAU Optronics Corp (友達光電), the world's third largest maker of flat-panel displays used in computer screens and televisions, said it started operations at its first factory that will make TV screens measuring 32 inches diagonally, as well as larger screens. \nThe plant, known in the industry as a sixth-generation (G6) factory, is the world's third, the Hsinchu-based company said in an e-mailed statement. \nSharp Corp of Japan and LG Philips LCD Co of South Korea last year opened the first sixth-generation plants, which produce the largest glass sheets from which television-sized screens can be cut. Samsung Electronics Co of South Korea, the world's largest maker of liquid-crystal displays (LCDs), plans to open a seventh-generation plant that can make TV screens 40 inches and larger this year. \nFlat-panel prices are falling after record investments by LCD makers caused oversupply problems in the US$36 billion industry. \nLG Philips said the glut would begin to ease in the second quarter as lower prices spur consumers to replace glass-tube TVs with flat-panel models that can be hung on walls. \nSamsung, Teco plan alliance \n \nSamsung Electronics Co will announce an alliance with Teco Electric & Machinery Co (東元電機) next month for Teco's distribution network to sell Samsung products, local media reported, citing Ho Wei-chang (何偉彰), vice president of the Korean company's Taiwan unit. \nThe two sides agreed to cooperate in marketing and may engage in further collaboration, local media said. Teco may also work with Toshiba Corp of Japan, local media said, without giving details. \nFiber maker may take over bank \n \nChina Manmade Fibers Corp (中國人纖) may take control of the management of Taichung Commercial Bank (台中商銀) after the fiber maker's stake in the bank rose above 10 percent, the Commercial Times reported, without saying where it obtained the information. \nThe Lin Yuan Group (霖園集團) agreed to sell its shares in Taichung Bank to China Manmade Fibers, the paper said, citing Huang Huo-tu (黃火塗), a board member of the bank. \nThe sale would bring the fiber maker's stake in the bank to 22 percent, according to the paper. \nThe Taichung Bank will re-elect its board in May, giving China Manmade Fibers an opportunity to take control, the newspaper said. \nCouncil rejects projection \n \nThe Council of Economic Planning and Development (CEPD) yesterday flatly rejected a projection made by a Citigroup analyst that the New Taiwan dollar will strengthen and trade at NT$27 against the US greenback in five years. \nCEPD vice chairman Yeh Ming-feng (葉明峰) said that the nation's trade surplus with the US is narrowing from US$5.52 billion in 2003 to US$4.24 billion last year. \n"Pressures on the NT dollar's appreciation are not heavy," Yeh said. \nHe added that pressures on currencies of two Asian countries -- China and Japan -- to appreciate are a lot heavier since the two countries' trade surplus with the US are huge. \nThe CEPD yesterday expressed concern that a weakening US dollar, troubled by the US' dual-deficit plight, will negatively impact the world economy and worsen a trade imbalance. Under such circumstances, the CEPD urged G7 countries to take joint action to manage the greenback's future fluctuation. \nNT dollar gains ground \n \nThe New Taiwan dollar yesterday strengthened to trade at NT$31.85 against its US counterpart. Turnover was US$558 million.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees