TAIEX snaps four-day streak
The stock market yesterday snapped a four-day winning streak to close 0.79 percent lower, a day after the TAIEX index reached 8,121.78, its highest since Jan. 24.
The weighted index fell 64.18 points to close at 8,057.6 following overnight losses on Wall Street.
The local bourse opened at 8,106 and fluctuated between 8,149.68 and 8,038.37 during the day’s trading. Market turnover totaled NT$146.57 billion (US$4.63 billion).
Inotera eyes syndicated loan
Inotera Memories Inc (華亞科技), the nation’s second-largest memory-chip maker, expects to sign a NT$35 billion (US$1.1 billion) syndicated loan to fund equipment purchases within six weeks.
Mega International Commercial Bank (兆豐國際商銀) will lead the syndicate for the five-year loan, which will carry an interest rate “in line” with the company’s average cost of debt of about 2 percent, Kai Strohbecke, vice president of finance at the Taoyuan-based chipmaker, said in a phone interview yesterday, without providing the exact figure.
He didn’t name the other banks or say how many are involved.
Inotera is raising money to fund an estimated NT$52 billion of equipment purchases this year as it upgrades factories to 50-nanometer technology amid a rebound in the market for memory chips used in computers. The company in February raised NT$14.4 billion in a rights offering, Strohbecke said.
Chipbond share sale approved
Chipbond Technology Corp’s (頎邦科技) board approved a plan to sell up to 50 million shares in a private placement, the Hsinchu-based company said in an exchange filing yesterday.
Chipbond is the nation’s largest LCD driver chip packaging and testing firm. It plans to use the proceeds to expand production, increase working capital and invite a strategic partner, according to the statement.
UMC revenues shoot up
United Microelectronics Corp (UMC, 聯電), the world’s second-largest contract chipmaker, said yesterday its revenue more than doubled to NT$9.48 billion last month from NT$4.54 billion a year earlier.
UMC said in a statement its first-quarter revenue also more than doubled to NT$26.72 billion from NT$10.84 billion a year earlier, but fell 3.7 percent from NT$27.75 billion in the previous quarter.
Fubon Financial income rises
Fubon Financial Holding Co (富邦金控), the nation’s second-largest listed financial-services company, reported first-quarter net income of NT$5.87 billion, or NT$0.72 per share, it said in an exchange filing yesterday, citing unaudited figures.
The company posted net income of NT$2.24 billion in the same period a year earlier.
Lite-On’s March revenue up
Local electronic component maker Lite-On Technology Corp (光寶科技) yesterday reported a consolidated revenue of NT$10.76 billion for last month, up 26 percent month-on-month and 46 percent year-on-year, hitting a record monthly high.
Lite-On attributed the growth to the company’s ongoing market share expansion, coupled with rising demand, according to a company statement.
In the first quarter, its consolidated revenue totaled NT$28.7 billion, up 47 percent from a year ago and representing the best quarterly result in six quarters, the statement said.
NT dollar inches lower
The NT dollar lost ground against the US dollar on the Taipei Foreign Exchange yesterday, declining NT$0.073 to close at NT$31.701. Turnover was US$886 million.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
INCREASING PRESSURE: Pegatron chief financial officer Louise Wu said the merger would allow them to be more flexible when meeting customer needs Pegatron Corp (和碩), an Apple Inc assembly partner, yesterday said that it would fully absorb metal casing subsidiary Casetek Holdings Ltd (鎧勝) in a NT$14.5 billion (US$490.93 million) deal to improve the companies’ competitiveness in the phone assembly supply chain. When Pegatron and Casetek suspended trading earlier in the day, speculation swirled that a possible purchase by China’s Luxshare Precision Industry Co (立訊精密) might be in the cards, but the announcement of the merger dispelled any conjecture. The board of directories of each company agreed that Pegasus Ace Limited, a wholly owned subsidiary of Pegatron, would purchase Casetek in a reverse triangular