Commodity rebates mulled
The government is considering reinstating rebates on import duties paid on raw materials and commodities to help exporters lower their costs of production.
The Ministry of Finance is conducting a feasibility study, it said in a statement on its Web site yesterday. The ministry has also halted plans to cancel rebates on import duties on other types of products.
The Ministry said its statement was issued to clarify a report in the Chinese-language Economic Daily News yesterday, without giving details.
Citing unidentified Ministry of Finance officials, the Economic Daily News reported yesterday that the government planned to reinstate import tax rebates on as many as 5,721 agricultural and raw materials to help boost exports.
ProMOS sells equipment
ProMOS Technologies Inc (茂德科技), the nation’s third-largest computer memory chipmaker, said yesterday it had sold a batch of equipment to local memory chip tester Powertech Technology Inc (力成科技) for NT$798 million (US$23.8 million), partly in order to repay debts to Powertech and to obtain cash for operations, according to a filing to the Taiwan Stock Exchange.
The move came after debt-ridden ProMOS sold some of its equipment to the world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (台積電), for NT$580 million last week.
MediaTek partners with CTTC
MediaTek Inc (聯發科), the nation’s biggest handset chipmaker, yesterday said it had formed a partnership with China Telecommunications Technology Labs (CTTC, 中國泰爾實驗室) to jointly develop next-generation mobile technology, mobile content and mobile devices, according to a company statement filed to the Taiwan Stock Exchange yesterday.
The announcement came after the Chinese-language Commercial Times reported yesterday that MediaTek planned to focus its resources partly on the 3G TD-SCDMA mobile standard that will be adopted in China only.
MTECH launches Muzee
The local market for Internet music and broadcasts will reach US$1 billion by next year, research by Market Intelligence and Consulting Institute (MIC, 資策會) shows. To tap into this exploding market, MTECH Corp (聖藍科技), with assistance from I-Shou University (義守大學), lauched Muzee Internet radio nationwide yesterday.
Through patented technology that eliminates the need for a software download, users must insert a Muzee USB device into their computer to receive 16,000 radio stations worldwide and more than 55 music genres, the company said at a briefing yesterday.
“Muzee is relatively unknown in Taiwan, because previously we have focused on expanding into global markets such as the US, Singapore and Europe to make sure Muzee is successful on the international stage,” MTECH chairman Joe Lin (林宗慶) said yesterday.
Muzee is releasing a limited number of 5,000 units nationwide. The Internet radio device sells for NT$388 which is one-tenth of the retail price abroad.
Nanya postpones construction
Nanya Technology Corp (南亞科技), the nation’s second-largest maker of computer memory chips, said yesterday the company would postpone its plan to construct a second 12-inch silicon wafer fab in Taipei County.
The company said the decision was mainly due to a 75 percent fall in the prices of dynamic random access memory (DRAM) chips on the world market. Nanya Technology president Lien Jih-chiang (連日昌) said the company would wait until the DRAM market recovers before reconsidering whether to build the plant.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a