ELECTRONICS
Samsung keeps top bosses
Samsung Electronics Inc defied speculation that it would drop the head of its underperforming mobile division, as the Samsung Group’s heir apparent opted to keep the man his ailing father appointed while the patriarch’s future is uncertain. Staff at Samsung have been waiting for the annual reshuffle after a weak smartphone performance and the worst earnings in three years, with many fearing for their jobs, but embattled co-chief executive J.K. Shin now knows he will continue to head the unit’s mobile division. Semiconductor business boss Kwon Oh-hyun and consumer electronics head Yoon Boo-keun also kept their jobs. Analysts said Jay Y. Lee, likely successor and only son of group patriarch Lee Kun-hee, opted to keep his father’s key lieutenants in place to ensure stability and consolidate his own position.
MANUFACTURING
Japan’s capital spending up
Japanese companies increased investment more than forecast in the third quarter, even as slumping consumption pushed the economy into recession. Manufacturers led a 5.5 percent gain in capital spending in the three months through September from a year earlier, beating the 1.8 percent median in a Bloomberg News survey. Corporate profits climbed 7.6 percent and sales increased 2.9 percent, according to Japanese Ministry of Finance data released yesterday. The unexpectedly strong gain in investment is a boost for Japanese Prime Minister Shinzo Abe. Manufacturing investment advanced 11 percent, with the metal industry boosting spending 85 percent. Machinery makers showed a 15 percent gain and information technology equipment producers increased investment by 26 percent.
JAPAN
Moody’s cuts credit rating
Moody’s Investors Service cut the nation’s credit rating, a setback to Abe before he begins campaigning for an election that he wants to focus on the economy. Moody’s reduced the rating by one notch to “A1,” the same level as Bermuda, Israel, Oman and the Czech Republic. It had been rated in line with Taiwan, South Korea and Saudi Arabia. The yen dropped to a seven-year low of ¥119.14 per US dollar immediately after Moody’s announced the reduction, before reversing those declines to trade at ¥118.40 as of 5:56 pm in Tokyo. Moody’s cited uncertainty over whether Japan would achieve its deficit-reduction goals and succeed in boosting growth in the world’s No. 3 economy. There are increasing risks of a rise in bond yields that could make it harder for Japan to manage its debt, Moody’s said. Standard & Poor’s has Japan at “AA-,” while Fitch Ratings has Japan at “A.”
INVESTMENT
Norway plans green focus
Norway’s sovereign wealth fund, the world’s largest, will invest almost US$3 billion into green technology stocks next year, chief executive Yngve Slyngstad has signaled. Starting on Jan. 1, the US$870 billion fund is to speed investments in renewable energy, waste management and energy-storage companies, among others, Slyngstad said last week in Geneva, Switzerland. The shift is to take place over a “shorter time frame,” he said. The fund is under political pressure to boost such investments and reduce its exposure to the coal industry, but investments in the cleanest technologies have generated low returns or even losses. The European Renewable Energy Index, which includes the industry’s 10 largest and most traded stocks, delivered investors a 35 percent loss over the past five years.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI