Virgin America clears hurdle
A new airline called Virgin America said on Friday it had passed a major hurdle in its bid to gain approval for domestic US service, and hopes to start passenger flights by early next year. The wannabe low-cost airline has been licensed to use the "Virgin" brand by Britain's Virgin Group, but is independent from the companies headed by Richard Branson. The US company said that it had successfully passed the Federal Aviation Administration's airline certification review process, and is awaiting final approval from the Department of Transportation before taking to the skies.
Bank predicts low inflation
Taiwan's central bank expects inflation this year to fall below the statistics agency's forecast of 0.68 percent, Governor Perng Fai-nan (彭淮南) said on Friday in a report which is to be delivered to the Legislative Yuan tomorrow. "For the whole of this year, the annual rise in CPI will probably be below the statistics agency's forecast of 0.68 percent," Perng said in the report. In the first 11 months, the CPI rose an average of 0.59 percent from a year earlier, the Directorate General of Budget, Accounting and Statistics (DGBAS) said. Next year's average CPI rise will accelerate to 1.52 percent, though it is still lower than the DGBAS target of 2 percent, Perng said.
Goodyear, union reach deal
Goodyear Tire & Rubber Co and the union representing about 12,600 US workers reached a tentative deal on a new contract that would bring an end to an 11-week strike over health care benefits. The tiremaker and the United Steelworkers union reached the deal on Friday after both sides resumed talks early this week. The strike began on Oct. 5. The deal allows Goodyear to stick with plans to close an unprofitable plant in Tyler, Texas that makes wholesale private label tires, but provides for a one-year transition period during which workers will have the opportunity to take advantage of retirement buyouts. Workers will vote at ratification meetings in their communities on Thursday.
Brokerage heads set to quit
The two most senior executives of Nikko Cordial Corp, one of Japan's top brokerages, are expected to resign as early as tomorrow over alleged accounting irregularities, news reports said yesterday. Nikko Cordial, which has an investment banking alliance with Citigroup, plans to hold an emergency board meeting tomorrow when Nikko Cordial chairman Masashi Kaneko and chief executive Junichi Arimura are expected to resign, Japan's largest daily Yomiuri Shimbun reported. Business daily Nihon Keizai and Kyodo News agency had similar reports. On Monday, Japan's financial watchdog recommended a ?500 million (US$4.24 million) fine against Nikko Cordial for allegedly padding profits.
CTSP set for growth
The Central Taiwan Science Park (CTSP, 中部科學園區) is expected to have the largest congregation of 12-inch silicon wafer fabrication factories in the country, with 14 companies deciding to build their foundries there, the director of the CTSP preparatory office said yesterday. Yang Wen-ko (楊文科) said the park is currently home to 85 factories, 28 of which are precision machinery plants. There are also 25 plants manufacturing opto-electronic products in the Taichung County-based science facility.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to