Offshore units’ assets rise
The 62 offshore banking units (OBUs) of banks operating in Taiwan posted total assets of US$200.992 billion last month, up US$5.89 billion from the previous month, the central bank said in a statement yesterday. The OBUs of 38 local banks held US$177.366 billion in assets, while foreign banks’ 24 OBUs had US$23.626 billion in assets, the central bank said, without elaborating on the reason for the increase in total assets. At the end of last month, the primary uses of funds of all OBUs were discounts and loans, which amounted to US$79.429 billion, or 39.5 percent of total assets, the statement said. The main sources of funds were vostro accounts, head office and branches, which amounted to US$87.893 billion, or 43.7 percent of total liabilities, it said.
Winbond reports income fall
Memorychip maker Winbond Electronics Corp (華邦電子) yesterday reported its net income was NT$687 million (US$22.7 million) in the first quarter, down 17 percent from the previous quarter, with earnings per share of NT$0.19. On a consolidated basis, total sales in the quarter reached NT$10.425 billion, down 3 percent from the previous quarter, with gross margin of 29 percent. As far as its memory business is concerned, revenue in the first quarter from specialty DRAM accounted for 44 percent of its total sales, Winbond said in a press release. However, specialty DRAM revenue fell 11 percent from the previous quarter due to capacity allocation, the company said. To finance its technology migration plans, the company said it plans up to NT$17.4 billion in capital expenditure this year, up from NT$16.6 billion it announced in February.
Micron appoints new head
Micron Technology Inc on Thursday announced that its board appointed Sanjay Mehrotra as president and chief executive officer, effective from May 8. Mehrotra is to succeed chief executive officer Mark Durcan and joins Micron at a time of increasing opportunity for memory and storage technologies and solutions as the key enablers for the next generation of computing architectures, the company said in a statement. Durcan is to serve as an adviser to the company until early August, the company said.
FWEE approves dividend
Forest Water Environment Engineering Ltd (FWEE, 山林水工程), which provides engineering services for industrial water treatment, on Thursday said its board approved a cash dividend of NT$3.2 per share, compared with last year’s NT$3. The proposed dividend translated into a payout ratio of 81 percent and a yield of 4.86 percent based on the stock’s closing price of NT$65.8 in Taipei trading on Thursday. The company, a subsidiary of Rich Development Inc (力麒建設), reported net profit last year increased 42 percent to NT$488 million, with sales expanding 45.8 percent to NT$2.27 billion, buoyed by increasing demand in China’s sewage treatment market.
Yang Ming to open offices
Yang Ming Marine Transport Corp (陽明海運) yesterday said it has established a wholly owned subsidiary in the Philippines, Yang Ming Shipping Philippines Inc, as the company expects rapid expansion to continue in the Southeast Asian market. Yang Ming said that the new company will begin to provide services on Monday next week at offices in Manila, Cebu and Davao, with Eddie Yi (易德華) its first managing director.
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
’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
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign