Chi Mei approves investment
Chi Mei Optoelectronics Corp (奇美電子), the nation's second-biggest liquid-crystal-display (LCD) maker, yesterday said that the board has approved a proposed US$131 million investment in its Chinese units to meet rising demand for slim-screen TVs and computer monitors.
Chi Mei planned to increase its investments in its LCD module and LCD TV assemblers in Foshan, Guangdong Province and Ningbo, Zhejiang Province, according to a filing to the Taiwan Stock Exchange Corp.
The Tainan-based company told investors late last month that Chi Mei would have a significant growth this year as robust demand for LCD TVs and computer monitors may cause a supply constraint in the second half.
To cope with the demand, Chi Mei has raised its capital spending to NT$100 billion (US$3.1 billion) for this year, from NT$65 billion estimated previously by building a new next-generation plant.
The investments still need approvals from the government.
Green Energy plans buyback
Green Energy Technology Inc (綠能科技), the nation's top solar silicon wafer maker, planned to spend as much as NT$1.6 billion (US$50.47 million) to buy back 3 million shares, or 3.11 percent of its total capital shares, as solar stocks tumbled on worry about glut, according to a statement released yesterday.
Assuring investors his confidence on the solar industry, company president Lin Hur-lon (林和龍) said demand for solar cells remains strong, despite recent tumble on the financial sector, according to the statement.
Green Energy planned to buy those shares at price between NT$100 and NT$180 each during the two-month period ending April 14, the statement said.
The stocks repurchased will be paid to employees as bonus, the firm said.
Mediatek climbs by limit
Mediatek Inc (聯發科), Taiwan's largest chip designer, climbed by the daily limit in Taipei after Credit Suisse Group raised its investment rating on the stock to "outperform" and said the company has "passed the toughest period."
Mediatek gained 6.8 percent, the highest since Jan. 25, to NT$304.50 at the close of trade in Taipei, compared with a 4.2 percent gain in the benchmark TAIEX index.
The Hsinchu-based company last month said fourth-quarter earnings per share fell 5.5 percent from a year earlier to NT$6.13. Mediatek shares had declined 32 percent this year before today's advance, compared with an 11 percent slide in the TAIEX.
China Steel rises 21 percent
China Steel Corp (中鋼), the nation's largest and sole integrated steelmaker, yesterday said its January sales saw 21.75 percent growth from a year earlier to NT$20.04 billion.
The company said that, despite rising steel prices, last month's demand continued to see 3 percent growth from December to total 930,000 tonnes, with prices for the first quarter rising 5 percent to boost profits.
The company expects this month's sales to flatten as a result of fewer working days.
Baidu.com sales rise 79%
Baidu.com Inc (百度), China's leading search engine, said yesterday its fourth quarter profit rose 79 percent on strong revenue from online marketing.
For the three months ending Dec. 31, Baidu said it earned 219.8 million yuan (US$30.5 million), or 6.32 yuan per share. Quarterly revenue rose 110 percent to 571.1 million yuan.
Analysts polled by Thomson Financial had expected a profit of US$0.72 per share on US$77.1 million in revenue.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to