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.
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.
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.
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.
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.
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.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the