HTC Corp (宏達電) yesterday said it is to sell a plot of land and a building in Taoyuan to Inventec Corp (英業達) for NT$6.06 billion (US$183.46 million) as part of its efforts to lower operational costs and boost efficiency.
The local smartphone maker said the production facilities and its employees would be transferred to HTC’s three other properties in Taoyuan to centralize its production facilities.
“The sale of the land and building will not affect HTC’s production capacity or shipping schedules,” an HTC investor relations officer said by telephone.
The officer said the transaction also has no implications for HTC’s operations or headcount.
After deducting transaction costs and tax payments, the firm is to book a NT$2.1 billion non-operating gain from the sale of the land and the building, the smartphone company said.
“A non-operating gain of NT$2.1 billion is to be booked in the first quarter of next year,” the officer said.
When asked whether HTC has plans to sell other assets to continue to cut its operating costs, the company said it would review all the possibilities based on its operational needs.
The smartphone maker reported a net loss of NT$12.56 billion in the first three quarters of this year, a significant decline from a net profit of NT$1.01 billion in the same period last year.
That represented a loss per share of NT$14.68 from January to September, compared with earnings per share of NT$1.23 last year.
In the quarter ending Sept. 30, HTC had NT$43.3 billion in cash and cash equivalents, its balance sheet showed.
In an attempt to meet the expanding scale of its server business, Inventec said its board of directors approved the NT$6.06 billion purchase of the land and building from HTC.
“The building will be used as the main office of Inventec’s server business,” an Inventec investor relations officer said by telephone.
The officer said Inventec’s server business is based in two offices in Taoyuan and the purchase of the building from HTC would help the company centralize the management of its server business.
The officer said the firm also plans to set up a research and development center for the server business in the building.
Inventec said it expects the transaction to complete in March next year and it expects to transfer the server business and its employees to the building in the second quarter of next year.
The NT$6.06 billion transaction costs would be booked in the first quarter of next year, the firm said.
After moving the server business to the new building, the remaining offices in Taoyuan would be used for Inventec’s solar business, the officer said.
HTC shares rose 0.63 percent to close at NT$79.5 in Taipei trading yesterday, while Inventec shares remained unchanged at NT$21.9. The TAIEX lost 0.77 percent.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies advanced chips to Nvidia Corp and Apple Inc, yesterday reported NT$1.046 trillion (US$33.1 billion) in revenue for last quarter, driven by constantly strong demand for artificial intelligence (AI) chips, falling in the upper end of its forecast. Based on TSMC’s financial guidance, revenue would expand about 22 percent sequentially to the range from US$32.2 billion to US$33.4 billion during the final quarter of 2024, it told investors in October last year. Last year in total, revenue jumped 31.61 percent to NT$3.81 trillion, compared with NT$2.89 trillion generated in the year before, according to
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
RSS