With no clear indications of a turnaround in the short term, Epistar Corp (晶電) could report another unprofitable year amid a slow recovery in revenue growth, Capital Investment Management Corp (群益投顧) said.
“We estimate Epistar’s revenue will expand slightly by 1.61 percent annually to NT$25.92 billion [US$808.23 million] this year, with a loss of NT$2.09 per share,” Capital Investment said in a client note on Thursday last week.
Epistar has been making an effort to reduce its operational costs and is reaching out to non-LED applications businesses, after the nation’s leading LED chipmaker reported a net loss of NT$3.01 billion, or a loss of NT$2.81 per share, for last year.
A supply glut in the industry, caused by production capacity expansion in China, made Epistar’s net loss last year the largest in the company’s history, company data showed.
The company has reduced its production capacity by 25 percent since the fourth quarter of last year, with the number of metalorganic chemical vapor deposition machines cut to 375. The company has been phasing out obsolete machines and has centralized its production lines in the second quarter in a move to lower its annual costs by NT$400 million this year, Capital Investment said.
In the mean time, Epistar has diversified its business scope by increasing investments in power device components for non-LED applications since the beginning of this year, while its investments in automotive daytime running lamps could help it gain orders next year, Capital Investment said.
However, Epistar still faces an excess supply in LED chips despite a mild recovery in demand this year, the brokerage said.
Epistar reported revenue of NT$12.61 billion for the first half of this year, down 5.98 percent from NT$13.41 billion in the same period last year, its data showed.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB