Canadian phone-equipment maker Nortel’s sudden bankruptcy filing on Wednesday sent ripples through local contract manufacturers yesterday.
Wistron Co (緯創) released a statement on the Taiwan Stock Exchange yesterday to announce a possible loss of NT$200 million (US$5.99 million), or NT$0.13 per share, related to Nortel Networks Corp’s collapse.
Wistron said it had been in business with Nortel for many years, and it was currently in talks with Nortel to collect due payments.
Since Wistron’s main product focus lies in personal computers, its stock only slid NT$0.70 or 2.85 percent to close at NT$23.85.
Nortel is seeking bankruptcy protection in Canadian, US and UK courts, the company announced on Wednesday. The company also saw revenues drop due to fierce competition in Internet-related equipment and traditional telecom systems.
In Taiwan, several suppliers of telecom components to the company with varying exposures saw their stocks decline yesterday.
Alpha Networks Inc (明泰科技) and Accton Technology Corp (智邦科技), which focus on the manufacturing of wireless adaptors/routers and WiMAX customer premises equipment, dropped NT$0.43 and NT$0.38 yesterday to close at NT$16.05 and NT$7.35, respectively.
While D-Link Corp (友訊科技) isn’t a direct supplier to Nortel, its stock suffered a 6 percent drop on the day to NT$18.90 due to its 38 percent ownership in Alpha Networks.
Hitron Technologies Inc (仲琦科技) closed down limit to NT$6.15.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
Industrial production expanded 22.31 percent annually last month to 107.51, as increases in demand for high-performance computing (HPC) and artificial intelligence (AI) applications drove demand for locally-made chips and components. The manufacturing production index climbed 23.68 percent year-on-year to 108.37, marking the 14th consecutive month of increase, the Ministry of Economic Affairs said. In the first four months of this year, industrial and manufacturing production indices expanded 14.31 percent and 15.22 percent year-on-year, ministry data showed. The growth momentum is to extend into this month, with the manufacturing production index expected to rise between 11 percent and 15.1 percent annually, Department of Statistics
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
RSS