■ Economy slowing down
Taiwan's index of leading indicators for last month stood at 108.9 points, down 1.2 percent from September, showing signs of an economic slowdown, the government said yesterday.
In September, the index of leading indicators registered a 0.5 percent month-on-month increase, the Council for Economic Planning and Development (CEPD) said.
The index of coincident indicators for last month, which coincides with the current pace of economic activity, fell 0.4 percent month-on-month to 109.2 points, after posting a revised 1.3 percent decrease in September, it said.
The total score of monitoring indicators for last month was 20 points, compared with 23 points, or a revised 22 points, for September.
The monitoring indicators for last month showed a "yellow-blue light," signalling economic slowdown, marking five consecutive months for this indicator.
■ FCC warns Taishin Financial
The Financial Supervisory Commission said yesterday that if Taishin Financial Holding Co (台新金控) cannot improve the capital adequacy of its banking arm by the end of January, the financial group will be required to dispose parts of its holdings in Chang Hwa Bank (彰化銀行).
Taishin International Bank's (台新銀行) capital adequacy ratio dropped to 8.42 percent in its third-quarter financial book, below the regulator's requirements, including a minimum of 10 percent, when parent Taishin Financial applied in June to buy an extra 7.5 percent stake in Chang Hwa to lift its holdings to 30 percent within a year, the commission said.
If it cannot raise enough funds to push the ratio back to 10 percent as required, the company will have to dispose the 2 percent holdings, which it has acquired in the open market, by June 15 next year, it added.
Taishin Financial has decided to pour NT$4 billion (US$122.3 million) into its banking arm and to raise another NT$8 billion from foreign investors by the end of this year.
■ Nanya raises NT$10 billion
Nanya Technology Corp (南亞科技), Taiwan's second-biggest memory-chip maker, raised NT$10 billion selling bonds as it steps up spending on new facilities.
The five-year debt, which won't pay any interest, can be converted to the company's stock at NT$32.38 a share, Taoyuan-based Nanya Technology said in a statement to the Taiwan Stock Exchange yesterday. The company's shares fell 1.1 percent to NT$26.1.
Nanya Technology's capital spending will jump more than 10-fold to NT$60 billion next year from NT$5.8 billion this year, vice-president Pai Pei-lin (白培霖) said at a briefing in Taoyuan on Oct. 25.
Nanya Technology is expanding capacity as Microsoft Corp will start selling its new Windows Vista operating system next year. The higher memory requirements to run Vista has generated demand from Dell Inc and other PC makers for dynamic random access memory (DRAM) chips used to store data, which Nanya produces.
■ EPA encourages composting
Household or kitchen waste can be turned into a cash cow if the waste is properly collected and treated, officials with the Environmental Protection Administration (EPA) said yesterday.
Officials from the EPA's Bureau of Environmental Inspection estimated that NT$2.4 billion can be generated annually by collecting kitchen waste and making it into compost.
The EPA has been pushing for the recycling of kitchen waste nationwide, aiming to turn food waste or leftovers into rich soil additives that can be used by publicly run organizations, farmers or private household gardens as organic fertilizers, the officials said.
Over 1,600 tonnes of food waste are collected nationwide every day.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s