NXP acquisition approved
Qualcomm Inc yesterday said it has gained approval from the Fair Trade Commission to carry out its acquisition of Dutch rival NXP Semiconductors NV, adding that the ruling is in line with a decision rendered in April by the US Federal Trade Commission. As the two companies have established separate supply chains while competing on the global market, the deal would not affect access to products and technologies, Qualcomm said, citing the Taiwanese regulator’s ruling. Through the merger, Qualcomm expects synergistic gains in the automotive and Internet of Things fields, it said.
T3EX upbeat on second half
Freight forwarder and logistics operator T3EX Global Holdings Corp (台驊國際投資控股) yesterday was upbeat on its prospects in the second half of the year, as ocean freight rates begin to recover from a slump, while its air transport business servicing Apple Inc suppliers is to benefit from the launch of high-profile products by the US giant. The company reported that sales in the first five months of this year rose 11.82 percent year-on-year to NT$4.21 billion (US$138.7 million), with revenue from its ocean freight business rising 15 percent to NT$2.52 billion. During the same period, air freight sales rose 16 percent year-on-year to NT$1.07 billion, the company said at its annual shareholders’ meeting.
NT$2.5 dividend approved
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said its shareholders have approved a plan to distribute a cash dividend of NT$2.5 per common share based on last year’s net profit of NT$939 million, or earnings per share of NT$2.54. Benefitting from growing global demand, GlobalWafers expects revenue to rise to an historical high this year from last year’s NT$18.43 billion. Strong demand has caused a supply shortage of all sizes of wafers, the company said.
Hon Hai shares hit NT$109.5
The market capitalization of Hon Hai Precision Industry Co (鴻海精密) breached NT$1.89 trillion yesterday, when its share price hit its highest level since late August 2014. The strong showing came after an Asia-based brokerage raised its target price for Hon Hai amid hopes that the world’s largest contract electronics maker is to expand its product portfolio, including robots, and launch its own brand, dealers said. Hon Hai shares advanced 4.29 percent to close at NT$109.5, with 91.13 million shares changing hands. The TAIEX closed up 0.92 percent at 10,250.60 points. Hon Hai’s closing price was its highest level since Aug. 27, 2014, when it stood at NT$112.
THSRC to expand Wi-Fi
Free Wi-Fi access is now available on 80 percent of Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) trains, the firm said yesterday. The company said it has begun setting up Wi-Fi facilities on its trains in cooperation with Chunghwa Telecom Co (中華電信), allowing travelers to access the government-backed free “iTaiwan” Wi-Fi service. Although 80 percent of the trains now have Wi-Fi installed, there might be poor coverage on some sections of the line, THSRC said. The company is planning to have Wi-Fi installed on all its trains in time for this year’s Universiade in Taipei, which begins on Aug. 19, by which time the quality of Wi-Fi connections would also have improved, it said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a