Less workers on furlough
The number of workers in Taiwan on unpaid leave fell sharply in the first two weeks of this month as about 20 employers ended their unpaid leave programs, government statistics released yesterday showed. According to data compiled by the Ministry of Labor, the number of furloughed workers fell to 642 from 1,045 at the end of last month. The ministry said that a total of 27 employers have implemented unpaid leave programs as of Tuesday, down by 18 percent from the end of last month. In the first half of this month, about 20 employers terminated their unpaid leave programs, while two others initiated theirs.
TransAsia sells subsidiary
TransAsia Airways Corp (復興航空) yesterday announced that it has sold TransAsia Catering Services Ltd (復興空廚) to an affiliate for NT$525 million (US$15.9 million) in a bid to raise funds to improve flight safety and expand operating capital. The catering and support services subsidiary was sold to Taiwan Secom Co (中興保全), the carrier’s affiliate under the SIGMU Group. Taiwan Secom, which offers security systems and services, plans to expand into the baked goods market through the acquisition. TransAsia Catering Services was spun off from TransAsia Airways in 2002, and sales to the carrier averaged 31 percent of total revenue.
UMC to issue 1.28bn shares
United Microelectronics Corp (UMC, 聯電), the nation’s No. 2 contract chipmaker, yesterday said its board approved a proposal to issue as many as 1.28 billion new shares via private placement in a bid to form strategic partnerships. The new shares account for about 10 percent of UMC’s total issued shares, the firm said, adding that it has not created a concrete plan yet. The board also approved the distribution of a cash dividend of NT$0.55 per share based on last year’s net profit of NT$13.45 billion, or NT$1.08 per share. Those proposals are subject to a shareholder vote during the annual shareholders’ meeting on June 7.
Sitronix to pay cash dividend
Handset panel driver IC designer Sitronix Technology Co (矽創) yesterday said its board has decided to pay a record-high cash dividend of NT$5 per share. The company plans to hold an annual general meeting on June 22 for shareholders to vote on the payout plan.
D-Link chairman to retire
Networking equipment manufacturer D-Link Corp (友訊科技) yesterday said chairman and CEO Roger Kao (高鶴軒) has decided to retire from his posts. The company said Kao’s retirement would not affect the company’s operations and the board would soon elect his successor. Kao, who assumed the chairmanship in September 2011, said in a statement that he wants to pass on the baton to a younger generation as the company turns 30 this year.
FIH net profit grows 35%
FIH Mobile Ltd (富智康), a handset manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), on Tuesday said its net profit last year grew 35 percent to US$228 million from a year earlier, due to higher revenue and lower impairment losses. The company, which provides integrated manufacturing services for the handset industry worldwide, reported earnings per share of US$0.0296 for last year. The company’s board has agreed to distribute cash dividends of US$0.0869 per share.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s