With China gearing up for construction of its 4G telecom infrastructure, Taiwan’s device suppliers are expected to benefit from rising demand across the strait in the fourth quarter of the year and beyond, market analysts said on Saturday.
They said industries such as integrated circuit (IC) packaging and testing services, IC substrate manufacturers and quartz crystal producers would benefit from the development across the strait.
China Mobile Ltd (中國移動), the world’s largest telecom operator, is expected to double its number of 4G base stations to 1 million by the end of the year, according to the Market Intelligence and Consulting Institute (MIC, 產業情報研究所), a division of the Taipei-based Institute for Information Industry.
So far, China Mobile has 40 million 4G subscribers and the number is expected to surpass 50 million by the end of the year, accounting for 16.6 percent of 4G subscribers worldwide, the MIC said.
In addition, Apple Inc’s two new iPhones — the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus — are to go on sale in China on Oct. 17, with the launch expected to further raise demand for 4G services in China and in turn give a boost to Taiwanese firms in the Apple supply chain, analysts said.
As a result, local IC packaging and testing services providers, including Siliconware Precision Industries Co (SPIL, 矽品精密) and Advanced Semiconductor Engineering Inc (日月光半導體), are upbeat about their earnings outlook for the fourth quarter and for next year.
SPIL chairman Bough Lin (林文伯) said that with the rising demand for 4G services in China, he expects Taiwan’s IC packaging and testing sector to continue to enjoy stable growth into next year.
In the IC substrate sector, Kinsus Interconnect Technology Corp’s (景碩科技) 4G devices are expected to account for 25 percent of its total sales this year, analysts said, indicating that strong demand in China has been driving the company’s growth.
In the quartz crystal business, strong demand resulting from base station construction in China’s 4G services is expected to increase TXC Corp’s (晶技) high-end device shipments, analysts said.
They estimated that quartz crystals used by base stations in 4G telecom services would make up almost 10 percent of TXC’s total sales this year.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the