Formosa Plastics Group’s (FPG, 台塑集團) four main units yesterday said they expected next year’s outlook to be flat or slightly weaker than this year because the global economy is still sluggish.
The companies also said they were decreasing their dependence on the Chinese market and would instead pay attention to other emerging markets.
The four main units are Formosa Plastics Corp (台塑), Formosa Petrochemical Corp (台塑石化), Formosa Chemicals & Fibre Corp (台灣化纖) and Nan Ya Plastics Corp (南亞塑膠).
The group's four major units posted a combined consolidated revenue of NT$137.67 billion (US$4.73 billion) last month, up 3.2 percent from a month ago and a 4.3 percent increase year-on-year.
Formosa Plastics chairman Jason Lin (林健男) said that the European debt crisis still remained a threat, reducing the the global economy’s momentum.
More factories are going to complete their annual repairs, increasing the supply of plastic products, according to Lin.
Furthermore, Lin said the market in China has not yet recovered to its previous level, causing the prices of plastic products to remain low. As a result, he did not expect the company’s revenue to increase significantly in the near future.
Formosa Plastics posted NT$14.78 billion in sales last month, up 3.8 percent from both a month ago and a year ago.
Nan Ya chairman Wu Chia-chau (吳嘉昭) said that he would feel grateful if the economic condition did not deteriorate further, and he did not know when the economy would start to improve.
Wu said the company’s EG-1 factory would start its annual repairs this month, decreasing production capacity.
Furthermore, Wu said the market condition for electronic materials was dire, decreasing the profitability of the company. The company is thus expected to see lower revenue in the fourth quarter than in the third quarter.
Last month, the company reported NT$14.8 billion in sales, up 4.6 percent from a month earlier and 5.8 percent from the previous year.
Formosa Chemical chairman Hong Fu-yuan (洪福源) echoed Wu’s economic prospects, adding that the global economy had bottomed out and would not deteriorate further.
Hong said that he expected the company to obtain higher profits in the fourth quarter than the third quarter, while the production in February may decrease because of the Lunar New Year.
Formosa Chemicals posted NT$25.04 billion in sales last month, up 12.8 percent month-on-month and 31.1 percent year-on-year.
Meanwhile, Formosa Petrochemical general manager Tsao Mihn (曹明) said that the unstable situation in the Middle East would keep oil prices from decreasing. Thus, he expected oil prices to remain stable and the company to continue making a small profit from the market.
Sales were NT$83.03 billion last month, up 0.3 percent from October and 21 percent higher than the same period of last year, the company said.
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
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MediaTek Inc (聯發科) has hired a former US Department of Commerce official to help it navigate worsening US-China tensions that have already ensnared its customer Huawei Technologies Co (華為). Patrick Wilson, who most recently served as director of the department’s Office of Business Liaison, has been appointed vice president of government affairs at MediaTek USA to lead its public policy initiatives, the chip designer said in a draft press statement seen by Bloomberg News. Wilson previously worked at the Semiconductor Industry Association, where he led the trade group’s dealings with the US federal government. Technology companies with ties to or operations in China