Thu, May 11, 2017 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA

MANUFACTURING

Hon Hai revenue rises

Hon Hai Precision Industry Co (鴻海精密), one of Apple Inc’s iPhone assemblers, yesterday posted revenue of NT$322.78 billion (US$10.66 billion) for last month, up 0.12 percent year-on-year from NT$322.38 billion in April last year. On a monthly basis, it represented a 5.53 percent decline from NT$341.69 billion in March, Hon Hai’s filing with the Taiwan Stock Exchange said. Hon Hai attributed the monthly decline to the softness of its computing products, while the performance of its devices stayed flat from a month earlier. Sales of its consumer products only dropped slightly last month from a month earlier, it said.

MANUFACTURING

Pegatron reports record sales

Pegatron Corp (和碩), an Apple Inc iPhone assembler, yesterday reported sales of NT$82 billion for last month, its strongest performance over the same period in its history, the firm said in a stock exchange filing. The monthly result represented a surge of 26.01 percent annually and 10.37 percent from a month earlier, the company’s filing said.

BANKING

Vision Fund close to US$95bn

SoftBank Group Corp is expected to announce commitments of as much as US$95 billion for its Vision Fund, people familiar with the matter said. The fundraising drive is expected to be announced next week, the people said, asking not to be identified as the information is private. A representative of Tokyo-based SoftBank declined to comment. Chief executive officer Masayoshi Son’s investment pool has attracted interest from Saudi Arabia’s sovereign wealth fund, which said it would consider offering as much as US$45 billion, as well as technology giants such as Apple and Qualcomm Inc, which have also said they would participate. Abu Dhabi’s Mubadala Development Co is also considering committing as much as US$15 billion, people familiar with the matter said. SoftBank plans to contribute at least US$25 billion of its own capital in the next five years. The Japanese company announced plans for the technology fund last year, aiming to create a one of the biggest technology investors over the next decade.

CURRENCY

US dollar rises against NT

The US dollar yesterday rose against the New Taiwan dollar, gaining NT$0.008 to close at NT$30.266. Turnover totaled US$744 million during the trading session. The greenback opened at NT$30.220 and moved between NT$30.216 and NT$30.290 before the close. Despite the recent pullback, local currency has risen about 7 percent against the greenback since the beginning of this year, which has led to concern that exporters could see their sales and earnings fall, and that calls could be made for the central bank to intervene in the foreign exchange market. “The central bank should move to prevent international speculative capital inflows and outflows from affecting the FOREX market,” said Hiwin Technologies Co, the nation’s largest manufacturer of linear-motion devices. Noting that 80 percent of the company’s sales rely on exports, the toolmaker said a fast appreciation of the currency could significantly affect its turnover and margins. While businesses should upgrade to increase their added value and reduce the effects of fluctuations in foreign exchange rates, the central bank should maintain a stable exchange rate because a rise or fall in domestic currency is closely related to national competitiveness, Hiwin said.

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