Shares in Powerchip Technology Corp (力晶) rose to nearly the 7 percent daily trading limit yesterday after the stock resumed trading on the local bourse following the completion of a 38 percent capital reduction to NT$56.09 billion (US$1.76 billion) from NT$90.47 billion.
As a result of the capital reduction, Powerchip’s capital shares fell to 5.61 billion and its net value improved to NT$7.06 per share, exceeding the required NT$5 a share in net value for investors to trade Powerchip shares on margins.
At the end of the first quarter this year, Powerchip’s net value reached NT$3.65 a share.
In other words, investors can once again trade Powership Technology shares by borrowing from brokers while using the stock as collateral. The margin trading ban has been in place for the past year.
Powerchip shares jumped by 6.98 percent to NT$8.28 yesterday on the GRETAI Securities Market, after being suspended from trading between Aug. 28 and Sept. 13 in preparation for restarting trading at a new price of NT$7.74 per share.
Company chairman Frank Huang (黃崇仁) reiterated that Powerchip would post a fourth straight quarterly profit this quarter on expectations that the price of PC memory chips, or DRAM, would fall at a measured pace. Huang made the comments in an interview with the Chinese-language Economic Daily News on Monday.
Powerchip made a net profit of NT$10.3 billion, or NT$1.88 per share, in the first half of this year.
In a downward spiral since last quarter, the price of benchmark DDR2 and DDR3 DRAM fell 0.83 percent and 3.96 percent to US$1.92 per unit and US$2.14 per unit, respectively, from the previous trading session, according to Taipei-based research firm TrendForce Corp (集邦科技).
Huang also stressed that the company’s priority was no longer capacity expansion, which has been a main cause of oversupply-driven downturns.
To minimize the volatility of the DRAM business, Powerchip plans to expand further into non-PC memory chips by allocating 40 percent of the company’s overall capacity to contract chip manufacturing and flash memory businesses, he said.
On July 6, Huang told a media briefing that non-PC memory made up 30 percent of its total capacity at that time.
Powerchip said it is supplying driver ICs used in LCD panels and Huang said during July’s media briefing that the firm is supplying driver ICs for Apple Inc’s new-generation of iPhone, dubbed iPhone 4.
Yesterday, Powerchip bought NT$501 million in semiconductor manufacturing facilities and equipment from Applied Materials South East Asia, according to a company filing with the Taiwan Stock Exchange.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
RSS