Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s biggest chip packager and tester, yesterday said it is seeking a second water source for its production lines in the south because of the havoc wreaked by Typhoon Morakot.
Over the past week, ASE has spent more than NT$10 million on purchasing clean water from private water companies to maintain normal operations.
State-run Taiwan Water Corp (自來水公司) has drastically cut the water supply to manufacturers in industrial areas in Kaohsiung since Aug. 8.
Taiwan Water said yesterday it had sent water tanks to industrial areas to help ease the supply constraint after it started rationing water last Thursday.
Kaohsiung is suffering a shortage of clean water, while some of Taiwan Water’s facilities were damaged by Morakot and have yet to be repaired.
“We have not been able to get enough water yet. Over the past week, we have been buying water from private companies to help us solve this problem and we will continue to do so,” an ASE official told the Taipei Times over the phone.
“The company’s production lines have not been affected by the water shortage but the extra expense is driving up our costs,” said the official, who declined to be named.
Every NT$20 million the company spends on water could lower ASE’s gross margin by 0.1 percentage points.
Its second-quarter gross margin is estimated at 21.7 percent, said Kenneth Lee (李克揚), head of Fubon Securities Investment Services Co Ltd’s (富邦投顧) research team.
“The longer the water problem remains unsolved, the bigger the impact on gross margin,” Lee said.
Lee said local governments would look for an immediate solution to the water problem to prevent investors from being discouraged.
In a statement on the Ministry of Economic Affairs’ Web site, Taiwan Water said it was restoring water supply gradually, but was not sure when the supply would return to normal levels.
As of yesterday, the company had delivered 1,150 tonnes of water in water tanks to 40 companies at the Nantze Export Processing Zone (楠梓加工出口區), it said.
More than 100 companies are suffering water shortages, including big names like Yieh United Steel Corp (燁聯鋼鐵), Orient Semiconductor Electronics Ltd (華泰電子), WUS Printed Circuit Co Ltd (楠電) and Sumiko Electronics Taiwan Co Ltd (台灣住礦電子).
While there are still complaints that some higher altitude areas in Kaohsiung still have no water supply, Taiwan Water said it had gradually resumed water supplies to the Jenwu (仁武) and Tashe (大社) industrial zones.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to