Wed, May 10, 2017 - Page 11 News List

Taiwan Business Quick Take

Staff writer

CHIPMAKERS

TSMC to upgrade capacity

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday said its board of directors approved capital appropriations of roughly US$1.27 billion to upgrade and expand advanced technology chip capacity, as well as to convert certain logic capacity to specialty technology. The funds are also to be used to develop capital investments and sustain capital expenditures for next quarter. The board also approved a donation of NT$30 million (US$991,473) to fund the creation of the TSMC Charity Foundation.

DISPLAY MAKERS

AUO monthly revenue falls

LCD panel maker AU Optronics Corp (AUO, 友達光電) yesterday reported a 10.5 percent monthly decline in revenue for last month to NT$27.78 billion, from NT$31.05 billion in March, as shipments of TV and PC panels fell. The figure represented growth of 7.6 percent from NT$25.82 billion in the same period last year. Shipments of TV and PC panels last month fell 12 percent from 9.84 million in March to 8.66 million units. Separately, Chunghwa Picture Tubes Ltd (中華映管) yesterday said revenue shrank 6.6 percent to NT$2.23 billion last month, compared with March’s NT$2.81 billion. It attributed most of the decline to an 11.4 percent monthly reduction in TV and PC panel shipments. On an annual basis, revenue grew 1.6 percent from NT$2.35 billion, it said.

CHIPMAKERS

Vanguard revenue plummets

Vanguard International Semiconductor Corp (世界先進), which makes controller chips for LCD panels, yesterday said revenue plunged 20.11 percent from NT$2.15 billion in the same period last year to NT$1.71 billion last month, due to fewer wafer shipments. On a monthly basis, revenue sank 28.5 percent from NT$2.4 billion in March. Vanguard blamed the weakness on a strong New Taiwan dollar and weak demand for controller chips for smartphone panels. It forecast a quarterly decline of at most 6.55 percent to NT$5.85 billion for this quarter. Separately, Adata Technology Co (威剛科技), the nation’s biggest memory module maker, yesterday said revenue soared 54.28 percent annually to NT$2.53 billion as supply constraints boosted prices. Adata expects memorychip prices to further trend up in this quarter because of tight supply.

PC MAKERS

Asustek revenue falls 40%

Asustek Computer Inc (華碩) yesterday reported revenue of NT$27.11 billion for last month, its lowest monthly figure since April 2013, which it attributed to the shortening product life of its smartphones and soft demand for PC-related products. The figure represented a 6.85 percent drop annually and 40 percent monthly, a filing with the Taiwan Stock Exchange said. The firm’s cumulative revenue in the first four months of this year totaled NT$135.33 billion, an 8.78 percent decline from the same period last year, the filing showed.

PETROCHEMICALS

LCY to spin off rubber unit

LCY Chemical Corp (榮化), which manufactures petrochemical products, yesterday said its board approved a plan to spin off its rubber business. The planned spin-off would give the unit more flexibility to collaborate with other companies, LCY officials said at a news conference. The reorganization project, which is scheduled to take effect on Sept. 1, still needs to be discussed at an annual shareholders’ meeting on June 27. Shareholders’ interests would not be affected by the plan, LCY said.

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