Real estate firms up on TAIEX
Shares closed 1.06 percent higher yesterday, driven by Wall Street's overnight rebound and several positive company-specific developments, dealers said.
The TAIEX added 83.18 points at 7,935.54, on turnover of NT$125.39 billion (US$3.81 billion).
Companies with hefty holdings in real estate benefited from news that Far Eastern Textile Ltd's (遠東紡織) unit Far Eastern Resource Development Co (遠東資源開發) had secured approval from the Taipei County Government to develop the firm's Banciao plant into communications and medical care zones.
Risers led decliners 662 to 520, with 203 stocks unchanged.
However, analysts warned that the market may begin consolidating its recent gains going forward, given an expected psychological resistance level of 8,000 points on the index.
Powerchip, Elpida seek loan
Powerchip Semiconductor Corp (力晶半導體), the nation's largest memory-chip producer, and Japan's Elpida Memory Inc, are seeking a NT$30 billion (US$912 million) loan to build a plant in Taiwan, two bankers with knowledge of the deal said.
The chipmakers have started discussions with banks on the financing, which will fund the plant to build 12-inch dynamic random access memory chips, according to the bankers, who declined to be identified before the loan was finalized.
The two companies are investing in a new plant to increase production of DRAM, whose spot prices rose 61 percent last year on increased demand from Dell Inc and Hewlett-Packard Co.
EU fines Siemens 396.6 million
European authorities fined Siemens AG, Areva SA, Alstom SA, Schneider Electric SA and six competitors 750.7 million euros (US$976.6 million) for fixing prices of electricity transmission gear.
Siemens, Europe's biggest engineering company, received the biggest fine of 396.6 million euros, said the European Commission, the EU's Brussels-based antitrust authority, in a statement yesterday.
The agency also fined Japan's Hitachi Ltd 51.8 million euros, Mitsubishi Electric Corp 118.6 million euros, Toshiba Corp 90.9 million euros and Austria's VA Technologie AG, which Siemens bought in 2005, 22 million euros.
"The commission has put an end to a cartel which has cheated public utility companies and consumers for more than 16 years," Competition Commissioner Neelie Kroes said in the statement.
The total penalty is the second-highest imposed by the commission for a cartel.
TAITRA plans banana workshop
The semi-official Taiwan External Trade Development Council (TAITRA) is planning to organize a workshop next week on the country's banana exports to Japan, its most important market for the fruit, TAITRA officials said yesterday.
Taiwan sold 14,500 tonnes of bananas to Japan last year, representing a 46.98 percent year-on-year growth. There was still ample room to expand banana exports, the officials said.
According to statistics, the total value of the nation's fresh fruit exports reached NT$34.32 million (US$1.04 million) last year, with 54 percent shipped to Japan, TAITRA officials said, noting that banana made up the bulk.
The workshop is scheduled to open Feb. 1 at the TAITRA office in Kaohsiung, southern Taiwan, and Japanese importers have been invited to attend.
NT dollar rises
The New Taiwan dollar traded higher against its US counterpart yesterday, rising NT$0.140 to close at NT$32.807 on the Taipei Forex Inc.
Turnover was US$1.104 billion.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
Apple Inc has been developing a homegrown chip to run artificial intelligence (AI) tools in data centers, although it is unclear if the semiconductor would ever be deployed, the Wall Street Journal reported on Monday. The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices, according to the Journal, which cited unidentified people familiar with the matter. The server project is code-named ACDC (Apple Chips in Data Center) within the company, aiming to utilize Apple’s expertise in chip design for the company’s server infrastructure, the newspaper said. While this initiative has been
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that revenue would rise moderately in the second half of this year, driven primarily by robust demand for advanced wafers used in high-bandwidth memory (HBM) chips, a key component of artificial intelligence (AI) technology. “The first quarter is the lowest point of this cycle. The second half will be better than the first for the whole semiconductor industry and for GlobalWafers,” chairwoman Doris Hsu (徐秀蘭) said during an online investors’ conference. “HBM would definitely be the key growth driver in the second half,” Hsu said. “That is our big hope
The consumer price index (CPI) last month eased to 1.95 percent, below the central bank’s 2 percent target, as food and entertainment cost increases decelerated, helped by stable egg prices, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. The slowdown bucked predictions by policymakers and academics that inflationary pressures would build up following double-digit electricity rate hikes on April 1. “The latest CPI data came after the cost of eating out and rent grew moderately amid mixed international raw material prices,” DGBAS official Tsao Chih-hung (曹志弘) told a news conference in Taipei. The central bank in March raised interest rates by