Ichia sales grow 6 percent
Handset keypad maker Ichia Technologies Inc (毅嘉科技) yesterday reported a 6 percent monthly growth to NT$804.35 million (US$25.41 million) in sales for last month, citing strong demand for its mechanical integrated components. The company said sales of the mechanical integrated components, which accounted for 32 percent of total sales, jumped 19 percent monthly to NT$260 million last month, marking the highest sales in that segment in the past 18 months.
Innolux gets loan for debts
Innolux Corp (群創), the nation’s biggest LCD panelmaker, has obtained a syndicated loan from credit banks to primarily repay debts, the company said in a filing with the Taiwan Stock Exchange yesterday. Innolux planned to borrow NT$60 billion to NT$70 bilion to pay back bank loans. As a result, the company decided to cancel the offering of new shares worth NT$9.36 billion in the form of global depositary receipts. The cancellation will help Innolux avoid capital shares from swelling.
Water shortage to hit firms
Most of the nation’s electronics, petrochemical, textile, metals, pulp and paper-making industries are expected to be affected by potential stricter second-phase water rationing, the Ministry of Economic Affairs said yesterday. The ministry last week said it would not rule out reducing water supplies later this month after the Lunar New Year holiday. The ministry said the second-phase water rationing measure would reduce the supply of water every day to all manufacturers in the nation by 67,000 tonnes. A large portion, about 81 percent, of the reduction would come from water consumers in the aforementioned industries, the ministry said.
Camera ODM shipments rise
The nation’s top four original design manufacturers (ODM) of digital cameras saw their fourth-quarter shipments increase over the year-end holiday season, according to Taipei-based research company Digitimes Research. Ability Enterprise Co (佳能企業), Altek Corp (華晶科), Asia Optical Co (亞洲光學) and Hon Hai Precision Industry Co (鴻海精密) shipped a total of 3.99 million digital cameras during the last three months of last year, up 13.9 percent from the previous quarter and up 15.7 percent from a year earlier, Digitimes Research said in a report on Thursday last week. Among the four ODMs, Ability Enterprise accounted for 68.5 percent of the fourth-quarter shipments, followed by Altek with 23.5 percent, Hon Hai with 4.5 percent and Asia Optical with 3.5 percent. Despite the fourth-quarter rise, Digitimes Research estimated that 42.29 million digital cameras were shipped globally last year, a plunge of 31.5 percent year-on-year, and that global shipments this year are expected to drop by a further 25 percent.
VietJet offering free tickets
Vietnamese carrier VietJet Air, which started operations in Taiwan last year, yesterday said that it would offer free flight tickets online to celebrate its expanding passenger volume, which reached 10 million last month. The campaign plans to offer a total of 300,000 free tickets that are to cover the route between Ho Chih Minh City and Taipei via Taiwan Taoyuan International Airport, the budget airline said. The tickets are to be made available between noon and 3pm through Feb. 12, after the airline saw its 10 millionth passenger, a South Korean woman, on Saturday.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable