STOCK MARKET
NSF owns NT$5.49bn
The state-run National Stabilization Fund (NSF, 國安基金), which in April said it would exit the stock market, owned NT$5.49 billion (US$1780.6 million) in shares as of the end of last month, compared with NT$18.7 billion as of the end of March, the Ministry of Finance said yesterday in a statement. In the April-to-June quarter, the fund had booked gains valued at NT$1.15 billion with unrealized gains of NT$69.42 million, the ministry said. The ministry said the fund is on track to exit the stock market, despite the UK’s vote to leave the EU on June 23.
SEMICONDUCTORS
Foundry capacity to grow 5%
Global foundry capacity is expected to grow 5 percent annually to reach 6 million wafers per month next year, boosted mainly by Taiwan and China, Semiconductor Equipment and Materials International (SEMI) said yesterday. Taiwan will have the largest foundry capacity in the world, accounting for more than 55 percent of 12-inch foundry capacity, thanks to capacity expansion from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (聯電), SEMI said in a news release. China is to grab a 20 percent share of global foundry market next year, given a rapid capacity expansion primarily from Semiconductor Manufacturing International Corp (中芯), SEMI said.
SEMICONDUCTORS
TSMC denies China listing
TSMC yesterday denied reports it was considering going public on China’s stock market. TSMC made the remark after Chinese-language Commercial Times reported the possibility in a front-page story, which cited a Chinese official on Tuesday as saying that Taiwan-based high-tech firms were being encouraged to list on the Chinese market.
ELECTRONICS
Flytech earns NT$1.42bn
Flytech Technology Co (飛捷科技), a leading point-of-sale (POS) system manufacturer, on Monday reported record-high revenue of NT$1.42 billion in the second quarter, thanks in part to contribution of NT$76 million from its newly acquired Box Technologies Ltd last month. Flytech, which also produces medical panel PCs, said the UK subsidiary would help it to expand its presence in the UK and Europe and expects its total revenue in the second half to be higher than the first half’s NT$2.76 billion.
MACROECONOMY
Central bank auctions CDs
The central bank yesterday said it had auctioned NT$30 billion in two-year certificates of deposit (CDs) at an average interest rate of 0.413 percent, marking the lowest level in the bank’s history, as the market remained awash in liquidity. The latest CD sale came after the bank last month cut its benchmark interest rates by 12.5 basis points. Coupled with the bank’s recent sale in 364-day CDs to absorb excess funds from the banking system, the bank has sold NT$2.44 trillion of the notes, which would have the same effect as hiking the required reserve ratio by raising interest rates by nearly 7.5 percentage points.
STEEL
Chinese exports near record
China’s steel exports climbed to the second-highest level on record last month, as shipments ramp up amid escalating trade tensions. Sales advanced 23 percent from a year earlier to 10.94 million tonnes, China’s General Administration of Customs said. Exports in the first six months were 57.12 million tonnes, the seventh on-year increase in a row and the most ever for the period.
MORE THAN BUZZ: The chip designer said it has received numerous orders from automakers to supply 5G modem chips, as it works to expand beyond smartphones MediaTek Inc (聯發科) yesterday said it would ship the first 5G chips for vehicles to customers in the Asia-Pacific region by the end of the year, as it moves to expand the reach of its 5G chips beyond smartphones. The Hsinchu-based chip designer said it has been developing 5G chips for connected vehicles over the past few years, targeting applications such as telematics and in-vehicle information systems. “We are seeing demand for 5G technology from numerous makers of connected cars, including electric vehicle makers. We have obtained numerous orders from automakers to supply 5G modem chips with highly integrated features,” J.C. Hsu
INVENTORY DOUBLED: Key parts have backed up in warehouses, halting notebook production, as Acer’s CEO said that a gradual reopening would not solve the problem PC vendor Acer Inc (宏碁) yesterday said that lockdowns in China to control COVID-19 upended key component supply and disrupted PC production, although chip shortages have been improving. While chip supply constraints largely eased in the first quarter, the company faces uneven supplies of key components due to COVID-19 restrictions in China, Acer chairman and CEO Jason Chen (陳俊聖) told an online news conference. “Semiconductor shortage was the biggest problem in the first half of last year,” Chen said. “Now, we are beset by a supply chain issue caused by China's lockdowns.” With key components unable to be delivered and backing up in
Qualcomm Inc yesterday said it would maintain its supply chain strategy of sourcing chips from multiple foundry partners, including advanced chips from two major suppliers, to ensure a sufficient chip supply amid the COVID-19 pandemic. Qualcomm is reportedly working with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co on advanced products, such as 4-nanometer chips, for its new flagship 5G chips, the Snapdragon 8+ Gen 1 series. Qualcomm is sourcing chips made by mature technologies from several foundry partners, the company said. Alex Katouzian, general manager of Qualcomm Technologies Inc’s mobile, compute and XR business, told a virtual media briefing that
Covestro Taiwan Ltd (台灣科思創) yesterday launched a new research and development center that is to specialize in resin synthesis and fiberoptic coating after its parent company, Covestro AG, acquired a resins business from Royal DSM, it said. The German company in September 2020 agreed to buy the resins and functional materials business from Royal DSM for about 1.61 billion euros (US$1.69 billion), corporate data showed. The Dutch company’s local units, such as Covestro Resins (ROA) Ltd (帝昇) and Covestro Resins (Taiwan) Ltd (新力美), are next month to be integrated into Covestro Taiwan Ltd, with their employees continuing resins development, Covestro Taiwan said. The
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