Elpida TDRs tank on loan report
The Taiwan depositary receipts (TDR) of Japanese memorychip maker Elpida Memory Inc took a beating yesterday after Japanese media reported on Thursday that the company might seek a delay of its loan repayment to the government, dealers said.
Fears that the financial difficulties of the world’s third-largest DRAM chip firm would get worse also affected Powerchip Technology Corp (力晶科技) shares, a Taiwanese partner of Elpida, dealers said.
Memorychip testing and packaging service providers, such as Powertech Technology Inc (力成科技), also came under pressure as Elpida is one of their major clients.
Elpida’s TDRs fell 5.9 percent to close at NT$6.86 and Powertech shares fell 3.17 percent to NT$64.10, while Powerchip shares plunged by 6.52 percent to NT$0.86.
Japanese media reported that Elpida was likely to seek a delay in repaying a loan of about ￥30 billion (US$387 million) from the government.
Elpida issued its TDRs in February.
Bonds snap three-day advance
Taiwan government bonds snapped a three-day advance on optimism the country would sustain economic growth next year after the central bank kept borrowing costs unchanged on Thursday.
Governor Perng Fai-nan (彭淮南) said on Thursday that the central bank was concerned about inflation, even as property prices have stabilized and currency appreciation has helped ease the inflationary impact on import prices.
The yield on the 1 percent notes maturing in January 2017 climbed two basis points to 0.989 percent, according to GRETAI Securities Market data.
The rate dropped to 0.972 on Thursday, its lowest level for a benchmark five-year bond since Sept. 26, and it is down 16 basis points this year.
Taiwan government bonds returned 3.8 percent this year, the worst performance among 10 Asian countries, an HSBC Holdings PLC index showed.
Hon Hai to buy Fitipower stake
Four investment units of Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, announced yesterday that they were subscribing for NT$585 million (US$19.3 million) of new shares in integrated-circuit maker Fitipower Integrated Technology Inc (天鈺科技), according to various stock exchange filings by Hon Hai.
The four subsidiaries — Pao Shin International Investment Co (寶鑫國際投資), Hyield Venture Capital Co (鴻揚創投), Hon Chi International Investment Co (鴻棋國際投資) and Hon Yuan International Investment Co (鴻元國際投資) — have decided to subscribe for 45 million Fitipower common shares at NT$13 each through a private placement, according to the filings.
The share purchase is part of the companies’ long-term investment plans, the filings said.
However, the filings did not disclose how big a stake Hon Hai will have in Fitipower after the deal.
Cathay inks cross-strait deal
Cathay United Bank (國泰世華銀行) signed a cooperation agreement with China Development Bank (國家開發銀行) yesterday which aims to forge substantial ties with its Chinese peer and allow the Taiwanese lender to tap the Chinese market, the company said in a statement.
The latest pact with China Development Bank marked the fourth of its kind Cathay United has signed with Chinese lenders this year. The Taiwanese bank has inked similar deals with Agricultural Bank of China (中國農業銀行), Bank of Communications (交通銀行) and Bank of China (中國銀行).
Cathay United, the banking unit of Cathay Financial Holding Co (國泰金控), opened its Shanghai branch at the end of last year.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms