Shares up 2 percent
Taiwanese shares closed up 2 percent yesterday on a Wall Street rally overnight and brightening prospects for investment ties with China, dealers said.
The TAIEX index rose 145.37 points to 7,429.98 on turnover of NT$101.75 billion (US$3.14 billion). Gainers outnumbered losers 1,697 to 745, while 191 shares remained unchanged.
The market was boosted by big caps focusing on flat panels and semiconductors after Taipei said it could ease controls on high-tech investments in China by local companies while allowing further Chinese investments in Taiwan.
“The remarks certainly boosted investor confidence,” Capital Securities (群益證券) analyst Chen Yu-yu (陳育娛) said. The market, however, could cap at 7,500, Chen said.
PRC-bound exports recovering
The Bureau of Foreign Trade said Taiwan’s China-bound exports would recover next month and the rest of the year. Export orders from China started to return to positive territory in July, bureau director-general Huang Chih-peng (黃志鵬) told a media briefing.
Huang said the ministry intends to spend 25 percent of the annual trade promotion fund, from the current 15 percent, on sponsoring trade shows and other activities to help raise name recognition of Taiwan makers in China.
Huang said the promotion campaigns will target second-tier cities like Nanjing and Wuhan. The image improvement program can also help boost competitiveness of domestic products after Taiwan and China sign an economic cooperation framework agreement, he said.
AUO sells UMC shares
AU Optronics Corp (AUO, 友達光電), Taiwan’s largest maker of liquid-crystal displays, sold 22 million shares of United Microelectronics Corp (UMC, 聯電), the world’s second-largest custom-chip maker, for NT$346 million, the Hsinchu-based company said in an exchange filing yesterday.
AU Optronics sold the shares at an average price of NT$15.72 and made a profit of NT$113.8 million, the statement said.
Fubon cancels capital plan
Fubon Financial Holding Co (富邦金控) will cancel a capital enhancement plan because of changes in market conditions and the company’s finance plans, the company said in a stock exchange filing yesterday.
Last month, Fubon announced it would issue Global Depositary Receipts to increase its working capital and strengthen its finances. The company had planned to raise up to US$900 million through the issuance of new shares.
ChiNext firms attract huge bids
Ten companies scheduled to list on the ChiNext, China’s soon-to-be-launched NASDAQ-style board, said yesterday they attracted a combined 784.1 billion yuan (US$115 billion) in bids for subscriptions.
Demand for the initial public offerings’ retail tranche was high with shares in the firms, which range from software to medical equipment makers, oversubscribed by 82 to 258 times, filings to the Shenzhen Stock Exchange said.
The institutional tranche of the initial public offerings (IPO) the firms were oversubscribed by 35 to 117 times, the statements said.
The companies, which took subscriptions from retail and institutional investors on Friday, will raise a total of 6.68 billion yuan from the IPOs — more than double the 3.16 billion initially sought.
NT dollar gains on greenback
The NT dollar gained ground against the US dollar on the Taipei Foreign Exchange yesterday, rising NT$0.099 to close at NT$32.376.
A total of US$844 million changed hands during the day’s trading.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks