■ TAIEX falls on LCD concerns
Shares ended lower yesterday, dragged down by liquid-crystal-display panel makers amid concern that Chi Mei Optoelectronics Corp (奇美) would report disappointing earnings. The TAIEX closed down 63.66 points, or 1 percent, to 6,311.98. Chi Mei stock fell 3.7 percent to NT$46.85, while AU Optronics Corp (友達) dropped 2.1 percent to NT$49.75. The world's two largest contract chipmakers, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電), also fell as dealers believed there may be a lack of further catalysts to boost the shares after both companies gave their second-half outlook earlier this week. TSMC shed 1.3 percent to NT$53.20. UMC dropped 0.9 percent to NT$22.55.
■ US delegation to visit
A 78-member trade delegation will visit Taiwan beginning tomorrow for three-days, the American Institute in Taiwan (AIT) said in a statement released yesterday. The delegation is on a whirlwind tour of Asia in an effort to attract investment, and will be headed by Indiana Governor Mitch Daniels, the statement said. Daniels is expected to meet with President Chen Shui-bian (陳水扁), Minister of Economic Affairs Ho Mei-yueh (何美玥), and business leaders. Taiwan is the first stop on the delegation's nine-day trip, the AIT statement said. Indiana and Taiwan have a robust trade relationship, and Taiwan bought US$99.4 million worth of exports from Indiana last year, according to AIT
■ Uni-President counts on China
Uni-President Enterprises Corp (統一企業), the nation's biggest food company, said China will become its largest market this year, boosted by demand for bottled tea and juice. Sales in China are projected at NT$42 billion (US$1.3 billion) this year, surpassing for the first time those at home, which are expected at NT$41 billion, Uni-President spokesman Simon Hung (洪士民) said. "China's massive population and growing spending power has created a big opportunity for food companies," Hung said. "There are a lot of mouths to feed." Uni-President started selling bottled tea in China this year and plans to start selling drinks mixed with milk or other dairy byproducts there later this year or next, Hung said.
■ THSRC fundraising fails
Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) said it's failed for a third time since March to find investors for its preferred shares, delaying a fund raising plan. The company, which had been selling NT$5.5 billion (US$172 million) of preferred shares, said it could not complete the sale by the end of this month, as scheduled. "Some investors haven't been able to complete the necessary procedures such as gaining approval from their boards," Ted Chia (賈先德), THSRC assistant vice president, said yesterday. The stake sale is vital in providing funds for the company to finish its NT$462.1 billion project. The 345km project was scheduled to begin service on Oct. 31. The company will discuss with lenders before setting a new sale schedule, Chia said. THSRC signed a syndicated loan of NT$323.3 billion with 25 banks in 2000.
■ NT dollar weakens
The New Taiwan dollar turned weak against its US counterpart Friday, declining NT$0.043 to close at NT$31.996 on the Taipei foreign exchange market. Turnover was US$693 million, down from US$711 million the previous day.
ASML Holding NV’s new advanced chip machines have a daunting price tag, said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), one of the Dutch company’s biggest clients. “The cost is very high,” TSMC senior vice president Kevin Zhang (張曉強) said at a technology symposium in Amsterdam on Tuesday, referring to ASML’s latest system known as high-NA extreme ultraviolet (EUV). “I like the high-NA EUV’s capability, but I don’t like the sticker price,” Zhang said. ASML’s new chip machine can imprint semiconductors with lines that are just 8 nanometers thick — 1.7 times smaller than the previous generation. The machines cost 350 million euros (US$378 million)
EXPLOSION: A driver who was transporting waste material from the site was hit by a blunt object after an uncontrolled pressure release and thrown 6m from the truck Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday there was no damage to its facilities after an incident at its Arizona factory construction site where a waste disposal truck driver was transported to hospital. Firefighters responded to an explosion on Wednesday afternoon at the TSMC plant in Phoenix, the Arizona Republic reported, citing the local fire department. Cesar Anguiano-Guitron, 41, was transporting waste material from the project site and stopped to inspect the tank when he was made aware of a potential problem, a police report seen by Bloomberg News showed. Following an “uncontrolled pressure release,” he was hit by a blunt
Quanta Computer Inc (廣達), which makes servers and laptop computers on a contract basis, yesterday said it expects artificial intelligence (AI) devices to bring explosive growth to Taiwan’s electronics industry, as AI applications are starting to run on edge devices such as AI PCs. Taiwanese electronics manufacturers such as chipmakers, component suppliers and hardware assemblers are likely to benefit from a rapid uptake of AI applications, Mike Yang (楊麒令), president of Quanta Cloud Technology Inc (雲達科技), a server manufacturing arm of Quanta, told reporters on the sidelines of a technology forum in Taipei yesterday. “I believe the growth potential is promising once
RETALIATION: Beijing is investigating Taiwan, the EU, the US and Japan for dumping, following probes of its market, as well as tariff hikes on its imports The Chinese Ministry of Commerce yesterday said it had launched a dumping investigation into imports of an important engineering chemical from Taiwan, the EU, the US and Japan. It would probe imports of polyoxymethylene copolymer, a thermoplastic used in many precision parts used in phones, auto parts and medical equipment, the Chinese commerce ministry said. The ministry is reviewing materials provided by six Chinese companies that applied for assistance on behalf of the industry on April 22, it said. The probe will target polyformaldehyde copolymer imported from suppliers in the EU, the US, Taiwan and Japan last year, and will assess any damage