EADS loses S Korea jet bid
European aerospace consortium EADS has been eliminated from a bid to provide fighter jets worth US$7.3 billion to South Korea due to a failure to meet some requirements, a report said yesterday. The Eurofighter was dropped from the bid also sought by US company Boeing after Seoul’s military found that the EADS proposal did not meet its key demands, Yonhap news agency said. It cited an unidentified official at the Defense Acquisition Program Administration (DAPA). Seoul is seeking 45 one-seater aircraft and 15 two-seaters, but EADS proposed only six two-seater aircraft, which are costly to produce, due to budget problems, Yonhap said. DAPA will submit the proposal from the remaining bidder for a final review by top military officials, the official added, indicating Boeing’s F-15 Silent Eagle would be the only candidate.
Rudd warns over economy
Embattled Labor Prime Minister Kevin Rudd yesterday warned the country faced the risk of a recession if the conservative opposition are elected at next month’s polls. Rudd said opposition leader Tony Abbott, who is the frontrunner to win the Sept. 7 election, would slash A$70 billion (US$64 billion) from government spending if elected prime minister and weaken the economy. Abbott has denied the figure, describing it as “simply a fantasy,” but has not yet revealed his policy costings. Rudd said analysis by Finance Minister Penny Wong had found the conservatives needed to make cuts of A$69 billion to A$71 billion to fund its promises.
Home sales boom
US home sales probably increased last month to the highest level in more than three years as growing demand for residential real estate bolsters the expansion, economists said before reports this week. Combined purchases of existing and new homes climbed to a 5.64 million annualized pace last month, the fastest clip since November 2009, according to the median forecasts of economists in a Bloomberg survey. Another report may show the world’s largest economy is poised to strengthen. Improving sales, even as borrowing costs rise, and a limited supply of homes, lots and materials are helping boost home values and builder confidence. The waning effects of across-the-board federal spending cuts, combined with gains in the housing and auto markets, will probably help lift economic growth in the second half of the year. Sales of previously owned homes rose to a 5.15 million annualized pace last month from 5.08 million in June, according to the median forecast of 59 economists surveyed before the National Association of Realtors’ report on Aug. 21.
Agency chairman sacked
Authorities yesterday dismissed the chairman of its privatization agency HRADF after a newspaper reported that he traveled on the private plane of a businessman who just bought a state company. Stelios Stavridis is the second head of HRADF to leave in less than six months, reigniting controversy around the ailing privatization program which is a key part of its international bailout. An official said the dismissal followed a report in Proto Thema on Saturday that Stavridis last week traveled on the private plane of shipowner Dimitris Melissanidis, a major shareholder of a Greek-Czech consortium which in May agreed to buy a 33 percent stake in state gambling firm OPAP.
PRESSURE FROM THE US: Huawei said a decision by the US was ‘arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide’ Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources. The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said. TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that
MediaTek Inc (聯發科), which designs chips used in mobile phones, yesterday launched its new 5G Dimensity 820 system-on-chip (SoC), targeting mid-range to high-end smartphones. The company expects the penetration of 5G technology to gain pace quickly this year and not be affected too much by the COVID-19 pandemic. MediaTek said it aims to expand its 5G chip portfolio this year to cover phones of varying prices after it shipped its first 5G SoC, the Dimensity 1000, last quarter. The Dimensity 820, made by Taiwan Semiconductor Manufacturing Co (台積電) on 7-nanometer technology, is designed for mid-range to high-end 5G phones. MediaTek expects to infiltrate the
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