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Stocks up with Wall Street

Shares closed 0.55 percent higher yesterday on the back of further Wall Street gains overnight after the US Federal Reserve left interest rates unchanged, dealers said.

The TAIEX added 44.16 points at 8,096.86, on turnover of NT$97.04 billion (US$2.91 billion).

Risers led decliners 638 to 469, with 267 stocks unchanged.

On the Taipei foreign exchange market, the New Taiwan dollar lost NT$0.013 to close at NT$33.288 against the US dollar on turnover of US$1.05 billion.

Minister defends tax

Minister of Finance Ho Chih-chin (何志欽) told lawmakers yesterday that it would be inappropriate to scrap the inheritance tax or gift tax.

Ho said that 80 percent of inheritance tax revenue goes to local governments and that if there are no other sources of revenue, it will be a blow to their finances.

According to the ministry's statistics, between 30 percent and 40 percent of those filing for inheritance tax use the highest-tier tax rate at 50 percent, showing that the inheritance tax is still significant in terms of advancing the equitable distribution of wealth.

Ho said the ministry would study streamlining the current multiple-tier tax system in three months and whether the tax rate should be adjusted downward by the end of December.

High-speed rail bonds in debut

The Taiwan High Speed Rail Corp (THSRC, 台灣高鐵), the developer and operator of the nation's high-speed rail, will debut its US$300 million overseas convertible bonds on the Singapore Exchange this Wednesday after completing pricing of the face amount of the bonds yesterday at US$1,000.

THSRC has held roadshows in London, Singapore and Hong Kong this week for the issuance of the bonds, THSRC spokesman Arthur Chiang (江金山) said yesterday.

Subscription to the five-year bonds, managed by Deutsche Bank, was over 1.66 times, Chiang said.

Investors can sell the bonds back to THSRC after three years at a yield of 6.5 percent, THSRC said in a statement. If by then THSRC has not listed on the local bourse, the yield will be adjusted to 7.5 percent, it added.

Taiwan still No. 1

Taiwan will remain the world's No. 1 semiconductor foundry this year, with its semiconductor industry's total output expected to grow by 24.5 percent, far higher than the global growth rate of 8.9 percent, Minister of Economic Affairs Steve Chen (陳瑞隆) said yesterday.

Chen made the remarks while addressing the opening ceremony of the 2007 SemiTech Taipei at the Taipei World Trade Center, which will run until tomorrow under the auspices of the Taiwan Semiconductor Industry Association and the Taipei Computer Association.

Organizers said 350 booths have been set up by around 150 companies to display the latest products and technologies, including EDA tools, communication products, IC design, audio-visual compression products, IC manufacturing, packaging and testing, process equipment, components, materials and embedded systems.

Epistar chip imports barred

Royal Philips Electronics NV won a US trade panel ruling barring the import of chips made by Epistar Corp (晶元光電) that are used in traffic signals and vehicle brake lights.

The US International Trade Commission said imports into the US of light-emitting diode chips made by Epistar should be blocked because they infringe a patent owned by San Jose, California-based Philips Lumileds. The commission adopted a recommendation that ITC Judge Sidney Harris made in January, according to a Philips statement yesterday.




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