■ Automakers
China Motor plans stake sale
China Motor Corp (中華汽車), which makes Mitsubishi-brand vehicles in Taiwan, aims to sell a stake in a Chinese unit to Mitsubishi Motors Corp in the first quarter of next year to help it expand in China. Mitsubishi Motors has agreed to buy 20 percent of South East (Fujian) Motor Co (東南汽車) from China Motor, and negotiations on the price are continuing, said Yang Ming-te (楊明德), a spokesman for the Taipei-based carmaker. "We hope to reach an agreement before the end of the year," Yang said on Friday. "The deal will be a plus for us, as it will help sales of South East Motor," he said. South East Motor, a 50-50 venture between China Motor and the government of southeastern China's Fujian Province, has capital of US$138 million, Yang said.
■ Investment
Snow cleared in bonds probe
US Federal investigators have concluded that US Treasury Secretary John Snow did not violate conflict-of-interest rules in inadvertently investing in the bonds of two government-sponsored mortgage giants. The conclusion was contained in a document from the Treasury Department's Office of the Inspector General, released on Friday as a result of a Freedom of Information Act request. "No evidence or information was developed during the course of the investigation which would suggest Secretary Snow knowingly held [government-sponsored enterprise] securities," according to the Treasury document. Snow was a top executive at the railroad company CSX Corp before he became Treasury secretary in February 2003. As he prepared to move into the federal post, Snow has indicated he instructed his adviser to invest in treasury bonds to avoid any conflict of interest. But his adviser in 2003 ended up buying US$10.87 million in bonds held by government-sponsored enterprises of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Fannie Mae and Freddie Mac are big players in the mortgage market, and Snow has pressed for tighter regulation of them.
■ Singapore casinos
Wynn's bid eliminated
US casino operator Wynn Resorts has been eliminated from the race to build Singapore's first casino after failing to submit a background check by a deadline imposed by the city-state, authorities said. Only five candidates had met Friday's deadline for submission of documents for a compulsory background check, the Singapore Tourism Board said in a statement late on Friday. The government had asked shortlisted candidates to send in personal and corporate history disclosure forms. The Friday deadline was only for the Marina Bay project. Singapore will tender the Sentosa project next year.
■ Trade secrets
Ex-CEO admits conspiracy
The former chief executive of a software company has pleaded guilty to federal charges of stealing a rival's trade secrets. John O'Neil, the ex-CEO of Business Engine Software Corp, on Wednesday pleaded guilty in San Francisco to conspiracy to steal trade secrets and interstate transportation of stolen property, Assistant US Attorney Christopher Sonderby said. O'Neil, 43, the third Business Engine Software executive to plead guilty in the case, faces a maximum penalty of 10 years in prison and a fine of US$250,000. O'Neil admitted that he conspired over a 10-month period to illegally access the computer network of rival Niku Corp in order to steal trade secrets, according to the US Attorney's office.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
Prices of gasoline and diesel products at domestic fuel stations are this week to rise NT$0.2 and NT$0.3 per liter respectively, after international crude oil prices increased last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week snapped a two-week losing streak as the geopolitical situation between Russia and Ukraine turned increasingly tense, CPC said in a statement. News that some oil production facilities in Alberta, Canada, were shut down due to wildfires and that US-Iran nuclear talks made no progress also helped push oil prices to a significant weekly gain, Formosa said
MINERAL DIPLOMACY: The Chinese commerce ministry said it approved applications for the export of rare earths in a move that could help ease US-China trade tensions Chinese Vice Premier He Lifeng (何立峰) is today to meet a US delegation for talks in the UK, Beijing announced on Saturday amid a fragile truce in the trade dispute between the two powers. He is to visit the UK from yesterday to Friday at the invitation of the British government, the Chinese Ministry of Foreign Affairs said in a statement. He and US representatives are to cochair the first meeting of the US-China economic and trade consultation mechanism, it said. US President Donald Trump on Friday announced that a new round of trade talks with China would start in London beginning today,
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