Cyprus fears drag on index
The TAIEX closed lower yesterday in reflection of a falling Wall Street overnight amid lingering concerns over the financial situation in Cyprus, dealers said.
While the broader market trended lower, select high-tech stocks, such as Hon Hai Precision Industry Co (鴻海精密), which is part of Apple Inc’s supply chain, remained resilient on hopes that the US electronics giant will launch new iPhone and iPad models in June, dealers said.
The weighted index closed down 15.62 points, or 0.20 percent, at 7,796.22. Turnover totaled NT$64.71 billion (US$2.17 billion) during the session.
Hon Hai eyes iTV deal
Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, on Thursday declined to comment on media reports that its chairman Terry Gou (郭台銘) had met with representatives from Apple Inc earlier this month to discuss cooperation in TV production.
According to the reports, Gou met with Apple representatives at a 10th-generation flat-panel plant in Sakai, western Japan, and they discussed flat-screen shipments for production of Apple’s planned iTVs.
At the meeting, the reports said, Gou showed “a product” to the Apple representatives, indicating that the Sakai plant can supply panels to Apple in the US giant’s bid to enter the global smart TV business.
China Steel dividend approved
The board of China Steel Corp (中鋼), the nation’s biggest steelmaker, approved a proposal to pay a NT$0.4 cash dividend on its common shares based on last year’s net profits, the company said in a filing to the Taiwan Stock Exchange yesterday.
That is about a 1.5 percent cash dividend yield, compared with the stock’s closing price of NT$26.5 yesterday.
Shareholders of special shares are to receive a higher cash dividend of NT$1.3 per share.
China Steel made NT$5.81 billion, or earnings per share of NT$0.38, last year.
The board yesterday also approved five investment projects totaling NT$6.5 billion.
Applied Materials opens lab
US-based Applied Materials Inc yesterday opened a new advanced display technology laboratory in the Southern Taiwan Science Park in Greater Tainan.
The lab, set up three years after Applied Materials established its Tainan manufacturing center, signals the enterprise’s ambition to shift from manufacturing to research and development.
Applied Materials chairman and chief executive Mike Splinter said at the opening that there is growing demand worldwide for advanced high-resolution display panels for use in smartphones, tablet computers and personal computers.
Applied Materials’ establishment of the laboratory highlights its devotion to research and development for next-generation display devices, he said.
The lab would help bring NT$100 billion in business opportunities, the Ministry of Economic Affairs said last week.
Weaker euro hits NT dollar
The New Taiwan dollar fell against its US counterpart yesterday, down NT$0.056 to NT$29.909, as a falling euro exerted downward pressure on the local currency, dealers said.
It was the third consecutive session during which the greenback posted gains on the Taipei foreign exchange market and it hit its highest level since Sept. 3 last year, when the US dollar closed at NT$29.920.
Turnover totaled US$947 million during the trading session.
The weakness in the euro was due to rising concerns over the debt crisis in Cyprus, prompting traders to move their funds into US dollars as a safe haven, dealers said.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to