SERVICES
Sentiment index gains
The service sector showed signs of improvement in March, with an index gauging industry sentiment indicating accelerated momentum, according to a survey conducted by the Commerce Development Research Institute. The survey showed that the index rose to 104, up 1 point from a month earlier, the Taipei-based think tank said in a statement on Friday. The institute said the index could show steady growth for last month as the sector continues to benefit from rising consumption resulting from continued outbound sales growth.
SMARTPHONES
HTC revenue down
HTC Corp (宏達電) on Friday reported consolidated revenue of NT$4.71 billion (US$156 million) for last month, down 18.03 percent year-on-year and 9.4 percent month-on-month as demand for its smartphones remained weak. During the first four months of the year, HTC’s revenue totaled NT$19.24 billion, down 6.5 percent from a year earlier, the company’s filing with the Taiwan Stock Exchange said. HTC is forecast to remain in the red for the first quarter. It is to release its financial results tomorrow. Net losses for last year totaled NT$10.56 billion.
FREIGHT
T3EX income up by 367.1%
Freight forwarder and logistics operator T3EX Global Holdings Corp (台驊國際投資控股) reported its net income surged 367.1 percent year-on-year to NT$29.59 million in the first quarter, with earnings per share of NT$0.27. It attributed the increase to rising air and sea freight sales amid a gradual global economic recovery, as well as a better customer mix and improving operational efficiency. T3EX said it is upbeat about sales, as global trade is expected to continue to improve from last year.
MARKET LEADERSHIP: Investors are flocking to Nvidia, drawn by the company’s long-term fundamntals, dominant position in the AI sector, and pricing and margin power Two years after Nvidia Corp made history by becoming the first chipmaker to achieve a US$1 trillion market capitalization, an even more remarkable milestone is within its grasp: becoming the first company to reach US$4 trillion. After the emergence of China’s DeepSeek (深度求索) sent the stock plunging earlier this year and stoked concerns that outlays on artificial intelligence (AI) infrastructure were set to slow, Nvidia shares have rallied back to a record. The company’s biggest customers remain full steam ahead on spending, much of which is flowing to its computing systems. Microsoft Corp, Meta Platforms Inc, Amazon.com Inc and Alphabet Inc are
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
The US overtaking China as Taiwan’s top export destination could boost industrial development and wage growth, given the US is a high-income economy, an economist said yesterday. However, Taiwan still needs to diversify its export markets due to the unpredictability of US President Donald Trump’s administration, said Chiou Jiunn-rong (邱俊榮), an economics professor at National Central University. Taiwan’s exports soared to a record US$51.74 billion last month, driven by strong demand for artificial intelligence (AI) products and continued orders, with information and communication technology (ICT) and audio/video products leading all sectors. The US reclaimed its position as Taiwan’s top export market, accounting for
MARKET FACTORS: Navitas Semiconductor Inc said that Powerchip is to take over from TSMC as its supplier of high-voltage gallium nitride chips Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday in a statement said that it would phase out its compound semiconductor gallium nitride (GaN) business over the next two years, citing market dynamics. The decision would not affect its financial targets announced previously, the world’s biggest contract chipmaker said. “We are working closely with our customers to ensure a smooth transition and remain committed to meeting their needs during this period,” it said. “Our focus continues to be on delivering sustained value to our partners and the market.” TSMC’s latest move came unexpectedly, as the chipmaker had said in its annual report that it has
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