Fri, Jun 02, 2017 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with agencies


FPG starts Vietnam plant

Formosa Plastics Group’s (FPG, 台塑集團) Vietnam-based subsidiary, Formosa Ha Tinh Steel Corp (台塑河靜鋼鐵興業), yesterday said the No. 1 blast furnace of its steel complex was ignited on Tuesday evening for a test run. In a sign that the complex, which is in the Vung Ang Economic Zone in Ha Tinh Province, was on track to prepare for formal production, it produced its first steel slab at 8:45am yesterday, marking a first step toward commercial production, FPG said. Formosa Ha Tinh Steel’s major shareholders include FPG, China Steel Corp (中鋼) and Japanese firm JFE Steel Corp, and it had faced repeated delays in production since construction of the facility started in December 2013 due to various industrial incidents, as well as anti-Chinese protests.


Wistron invests for iPhone

Wistron Corp’s (緯創) board on Wednesday approved an additional capital injection of US$200 million for its plant in Kunshan, China. Yuanta Securities Investment Consulting Co (元大投顧) said in a note that the company might use the sizeable investment in the Kunshan plant to expand its capacity for Apple iPhone manufacturing next year. Wistron has been manufacturing large-sized iPhones, from 6 Plus to 7 Plus, and would likely manufacture the 8 Plus model, Yuanta said yesterday. The brokerage said the announcement suggested that Wistron would continue to gain order allocation for iPhones. Yuanta said it has raised its iPhone shipment forecasts for Wistron from 15 million to 17 million units this year and from 24 million to 27 million units for next year, or an 8 percent to 10 percent share of total iPhone orders.


MiTAC transitions to software

Contract server maker MiTAC Holdings Corp (神達控股) yesterday said it is targeting a turnaround in the company’s mobile segment this year, citing software orders’ contribution to earnings. MiTAC was a desktop assembler, but now focuses on its cloud and mobile businesses. The cloud business accounted for more than 80 percent and mobile segment for more than 10 percent of the company’s total sales last year, MiTAC president Billy Ho (何繼武) said at Computex Taipei. Ho said the company has been transforming into a software solution service provider by offering automotive navigation software and medical use-related software. Revenue from software services is estimated to reach more than NT$100 million (US$3.32 million) this year and the figure could grow to NT$1 billion by 2020, he said.


Cross-sector salary freeze

About 79 percent of companies in Taiwan’s industrial and service sectors froze salaries last year, according to a survey released on Wednesday by the Directorate-General of Budget, Accounting and Statistics (DGBAS). Only 20.9 percent of companies in the sectors gave pay raises, while 0.4 percent cut pay, according to the survey, which was conducted in February.


CPC hikes gas price

State-run oil refiner CPC Corp, Taiwan (CPC, 台灣中油) yesterday announced liquefied natural gas (LNG) prices would rise this month, while prices for liquefied petroleum gas (LPG) would remain unchanged. Effective today, average prices for LNG per cubic meter are to increase by 2.99 percent from last month, CPC said. As a result, an average consumption of between 30m3 and 45m3 of LNG per month would mean increased costs of between NT$8.4 and NT$12.6 per household, CPC said.

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