MANUFACTURING
Sector remains in recession
The local manufacturing sector remained in a recession last month, as the latest composite index flashed a blue light for the 12th consecutive month, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) reported yesterday. The streak of 12 blue lights was the longest for manufacturing activity in Taiwan since the global financial crisis between July 2008 and May 2009, the institute said. The score of the composite index reached 9.98 points last month and that in February revised down from 11.02 to 9.26 points, the institute said.
ELECTRONICS
Sharp to announce layoffs
Sharp Corp is planning to layoff about 1,000 employees as part of its efforts to strengthen its financial structure after the loss-incurring Japanese firm inked an agreement to sell a majority stake to Hon Hai Precision Industry Co (鴻海精密) earlier this month, according to a news report. The Nihon Keizai Shimbun said that although Hon Hai said it would retain as many of Sharp’s employees as possible after the acquisition deal, as the Japanese firm’s financial condition is worse than expected, the Taiwanese shareholder is likely to be forced to cut Sharp’s workforce.
GAMING
Macronix posts Q1 loss
Macronix International Co (旺宏電子), which supplies memory chips for Japanese video game console maker Nintendo Co, yesterday posted a net loss of NT$891 million (US$27.6 million) in the first quarter of this year, compared with losses of NT$1.67 billion in the previous quarter. The company’s gross margin recovered to 15 percent in the first quarter from 8 percent in the previous quarter, while revenue fell 9 percent quarter-on-quarter to NT$5.09 billion due to seasonal factors, Macronix said. As the company’s net value fell to NT$4.84 per share in the first quarter, trading in Macronix shares is likely to be restricted to cash-only transactions. The Taiwan Stock Exchange is likely to announce Macronix is to be suspended for margin trading on its shares.
LIGHTING
Coretronic’s earnings dim
Coretronic Corp (中光電), a manufacturer of LCD backlight modules, yesterday reported earnings per share of NT$0.59 for the first quarter, after net income increased 10.7 percent annually to NT$322 million. Coretronic, which also produces energy-saving items, visual-solution products and projectors, said revenue in the first quarter declined by 12.1 percent from a year earlier to NT$13.896 billion, affected by seasonally low demand and impacts from an earthquake in February.
BANKING
Taishin payout approved
Taishin Financial Holding Co (台新金控) yesterday said its board had approved a plan to distribute a cash dividend of NT$0.483 per share and a stock dividend of 7.24 percent. The dividend payout was based on the company’s net income of NT$13.2 billion for last year, or earnings per share of NT$1.39. On Wednesday, the Taipei District Court ruled partly in favor of Taishin Financial in its dispute with the Ministry of Finance over the control of Chang Hwa Commercial Bank’s (彰化銀行) board. Credit Suisse Group AG yesterday said Taishin might use the court ruling as a foundation to work with the incoming government that is more supportive of Taishin’s control over Chang Hwa. The next board elections for Chang Hwa are to take place in June next year.
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure