‘Modest’ expansion forecast
The economy will experience “modest” expansion this year as a tight labor market constrains some industries amid improving global demand, the government said yesterday after growth exceeded initial estimates last quarter. The government reiterated its forecast for the economy to expand by between 2 percent and 4 percent this year, and for non-oil domestic exports to increase by between 1 percent and 3 percent. The economy expanded 4.9 percent in the first quarter from a year earlier, after growing a revised 4.9 percent in the previous three months, the trade ministry said.
Demand to boost growth
The continent is set to see economic growth of 4.8 percent this year and further expansion to 5.7 percent next year, an annual report published on Monday showed. The report titled Economic Perspectives in Africa was jointly produced by the Organisation for Economic Co-operation and Development, the African Development Bank and the UN Development Programme. The three groups said growth has come from a more diversified economy, boosted by internal demand, infrastructure and a growing trade of manufactured goods around the continent. However, they added that the geopolitical situation on the continent could affect the growth estimates.
Market reaches ‘maturity’
The global market has reached a “maturity and stabilization” phase with growth of about 2 percent expected this year — the same level as last year. The study by the US consultancy Bain & Co and the Fondazione Altagamma found the US would be the major engine for growth, while revenues in Europe would do well mainly thanks to foreign tourists. Japan is set for solid growth, but is punished by an unfavorable exchange rate. China does not show a lot of dynamism, unlike Hong Kong and Macau, the report said. There has been strong growth in Southeast Asia, particularly in Indonesia, it added.
GoPro eyeing US listing
The company behind GoPro cameras used to capture sports action from players’ perspectives filed on Monday to raise US$100 million in an initial public offering. Silicon Valley-based GoPro did not disclose how it planned to price the shares, but it did reveal that it is already profitable, making a net income of US$60.6 million on nearly US$1 billion in revenue last year. GoPro said in a filing with the US Securities and Exchange Commission that profit slowed to US$11 million on US$235.7 million in revenue in the first three quarters of this year.
Twitter mulling music deal
Twitter Inc is mulling plans to buy the German-based music-sharing service SoundCloud to fuel growth at the social network, the news site Re/code reported on Monday. The move would be a new effort by Twitter to get back into music after a failed attempt last year to launch a music-finding service. The report suggested that such a deal, if consummated, would be expensive for Twitter, but would add a company with a customer base of 250 million, roughly the same size as that of the messaging platform. SoundCloud recently raised about US$60 million in venture capital, which would give the start-up a value of about US$700 million, according to the Wall Street Journal. Neither company has commented on the report.
‘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
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
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment