ELECTRONICS
Verizon-run iPad 2 recalled
Apple Inc said it was recalling an extremely small number of iPad 2 tablet computers to correct a manufacturing flaw that prevents some users from connecting to the Verizon Wireless network in the US. The recall only involves devices running on the Verizon network, said Trudy Muller, a spokeswoman for the Cupertino, California-based company, on Friday. She said the company will replace those tablets with new ones and declined to say how many users were affected. Some iPads were manufactured with duplicates of a unique number, known as the mobile equipment identifier, that is used to identify it when connecting with a wireless network, Muller said.
UNITED STATES
Budget could break US$1tn
The federal budget deficit is on pace to break the US$1 trillion mark for a third straight year, putting pressure on Congress and President Barack Obama’s administration to come up with a plan to rein in government spending. The deficit through the first eight months of this budget year totaled US$927.4 billion, the Department of Treasury said on Friday. Three years ago that would have ranked as the highest ever for a full year. Instead, it is running almost even with last year’s pace, when the deficit grew to US$1.29 trillion, and behind the 2009 deficit that hit a record US$1.41 trillion. The imbalance for last month was US$57.6 billion, compared with US$135.9 billion for the same month last year. However, much of that improvement came from a US$45 billion write-down in the estimated cost of the financial bailout program.
CHINA
Risk of ‘hard landing’: expert
The economy is at risk of a “hard landing” after 2013, as efforts to spur growth through investment cause excess capacity, said Nouriel Roubini, the New York University professor who predicted the financial crisis. “China is now relying increasingly not just on net exports, but on fixed investment” which has climbed to about 50 percent of GDP, Roubini said in Singapore yesterday. “Down the line, you are going to have two problems: a massive non-performing loan problem in the banking system and a massive amount of overcapacity is going to lead to a hard landing.” The nation faces a 60 percent chance of a banking crisis by mid-2013 in the aftermath of record lending and surging property prices, according to Fitch Ratings.
PHARMACEUTICALS
Novo Nordisk to pay US$25m
Danish company Novo Nordisk has agreed to pay US$25 million to settle allegations that it promoted the misuse of blood-clotting drug NovoSeven, the US Department of Justice said on Friday. Separately, the company will also pay a US$1.7 million settlement over allegations it encouraged fraudulent claims to be submitted to a government-run healthcare plan for two diabetes drugs, a top justice department official said. In a statement on its Web site, Novo Nordisk acknowledged both settlements, but said that in each case, the company had not admitted to any wrongdoing.
AUTOMAKERS
Ford to lay off 150 in Buffalo
Ford Motor Co will lay off 150 people from its Buffalo Stamping Plant on Sept. 5 because of the planned closing of one of two Canadian assembly plants it supplies. The layoffs were disclosed on Thursday in a notice to the New York State Department of Labor. Ford announced in November 2009 it would shut down its St Thomas Assembly plant near London, Ontario, because of a drop in demand for larger vehicles.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San