INSURANCE
Sompo, BOS form alliance
Japan’s major non-life insurer Sompo Japan Insurance Inc is set to form a sales partnership with China’s Bank of Shanghai (BOS, 上海銀行), a newspaper said yesterday. Sompo Japan, a unit of NKSJ Holdings Inc and the major Chinese commercial bank could announce the deal as early as today, the Nikkei business daily reported. As a first step, the Chinese arm of Sompo Japan will sell insurance products through BOS to corporate clients next month, the newspaper said. Sompo Japan aims to shore up its earnings base by tapping demand in the fast-growing Chinese market, while BOS will earn sales commissions and acquire insurance know-how, it said. The partners will also jointly develop medical insurance for the wealthy in China, it added.
BUSINESS
Confidence up in Japan
Fewer executives of major Japanese firms are concerned about a “double-dip recession,” while a majority of forecast a full recovery late next year, according to a survey released on yesterday. The Nikkei business daily of presidents and other top managers at 143 companies, including Panasonic, Sony, Toyota, Mizuho Financial Group. The poll showed that 32 percent of respondents said they were concerned about a “double-dip recession,” down from 50 percent in October’s survey. Nearly 70 percent said the brighter outlook was mainly as result of strong growth in emerging economies, while 40 percent noted the recent depreciation of the yen.
MINING
S Korea to secure supplies
South Korea will cooperate with Myanmar to develop mineral resources including rare-earth minerals as it seeks to secure supplies amid rising raw material prices. The two countries agreed to conduct a geological study and develop projects, South Korea’s Ministry of Knowledge Economy said in a statement yesterday. Seoul, which imports almost all its energy and minerals, is increasing spending on resources projects to line up supplies. During his Dec. 23 visit, Korean Vice Minister Park Young-june asked the government of Myanmar, to allow South Korean companies explore for oil and gas onshore, which foreign firms are currently prohibited from doing, the ministry said. A group of companies led by South Korean trading house Daewoo International Corp, is developing gas resources in Myanmar’s A1 and A3 offshore blocks.
OIL
Kuwait likes US$100 oil
The global economy can withstand an oil price of US$100 a barrel, Kuwait’s oil minister said on Saturday, as other exporters indicated OPEC could decide against increasing output through next year in the belief that the market is already well supplied. European benchmark ICE Brent crude for February closed at US$93.46 on Friday after hitting US$94.74 a barrel, its highest level since October 2008. Arab oil exporters meeting in Cairo this weekend said they saw no need to increase supply of crude as stocks were high and prices inflated temporarily by cold weather in Europe.
AVIATION
Revenue up at Air India
Air India, the national carrier, said its passenger numbers increased 13 percent from a year earlier between April and last month and revenue increased 23 percent to 72.5 billion rupees (US$1.6 billion). The carrier flew 9.05 million people in the eight months that ended on Nov. 30, according to an e-mailed statement from the Mumbai-based airline.
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to