MOF told to clean up TAMCO \n \nThe Control Yuan, the government’s top watchdog body, yesterday said it has passed a motion for the Ministry of Finance (MOF) to improve its handling of an assets management company, after reports of misappropriation of funds surfaced earlier this year. \nChen Sung-chu (陳松柱), a former chairman of Taiwan Asset Management Corp (TAMCO, 台灣金聯), was accused of pocketing NT$26 million (US$807,000), which included the company’s investment returns and employee bonuses, during his 19-month tenure. \nThe partially state-owned TAMCO was founded in 2001 as the nation’s first asset management company, with the aim of helping local financial institutions reduce bad loans and improve their finances. \nChen was appointed chairman in July 2008 by the MOF to represent the government as one of TAMCO’s shareholders. \n“The MOF, which is supposed to be responsible for supervising the financial sector, failed to fulfill its duty with regard to the operations of TAMCO,” the Control Yuan said in its motion. \n“As a shareholder of TAMCO, the ministry also failed to correct TAMCO’s conduct, which allowed Chen to misappropriate the company’s funds,” the motion stated. \nApart from Chen, 58 other TAMCO employees were found to have dipped into the company’s investment profits. \nSo far, 55 of them have returned the money, while four others, including Chen, have refused to do so. \nUMC sales up 11.34% \nUnited Microelectronics Corp (UMC, 聯電), the world’s second-largest contract chipmaker, yesterday posted NT$29.75 billion in better-than-expected sales in the second quarter of this year, up 11.34 percent quarter-on-quarter. \nIn April, UMC vowed to post a quarterly sales growth of 7 percent to 9 percent. \nLast month, UMC recorded NT$10.34 billion in sales, up 2.43 percent from May and the highest in almost 32 months. \nStrong global demand has led to a full utilization of the company’s production facilities. \nTaiwan not ‘developed’: FTSE \nTaiwan needs to improve in some areas, including the availability of its local currency, before it can be upgraded to the category of “developed” market, Paul Hoff, FTSE Group’s managing director for Asia-Pacific, said in Taipei yesterday. \nThe outcome of the next review will be announced in September, and Hoff did not say when Taiwan may be raised. \nThe London-based index compiler currently ranks Taiwan as an “advanced emerging” market and the nation is on the watch list for an upgrade. A higher ranking would help attract more investments that are benchmarked against FTSE’s indexes. \nStock exchanges in MOU talks \nThe Taiwan stock exchange is in talks with the Shanghai and Shenzhen stock exchanges on a memorandum of understanding for closer cooperation, Lawrence Shan (單高年), senior vice president at the Taipei-based exchange said at a forum yesterday. He declined to say when it would be signed. \nNT dollar up slightly \nThe New Taiwan dollar yesterday gained by NT$0.035 to close at NT$32.185 against the US dollar on turnover of US$562 million. \n Meanwhile, the nation’s central bank yesterday issued NT$80 billion in certificates of deposit, more than the NT$50.3 billion that matured, the monetary authority said in a statement on its Web site. However, the bank warned in another statement that it may tighten inspection of home loans in the Taipei area to crack down on banks that dodge mortgage rules.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB