US partnership sought
Ho Mei-yueh (何美玥), a national policy adviser to President Tsai Ing-wen (蔡英文), in Washington on Tuesday said that the nation hopes to foster its “strategic partnership” with the US through investment and trade exchanges. Ho, who is leading a delegation to the Select USA Investment Summit, said that more than 140 representatives from 84 Taiwanese businesses could introduce combined investment of US$34 billion to the US. Ho also expressed hope of a stronger strategic partnership between Taiwan and the US. She said she had discussions with officials — including Matthew Pottinger, senior director for Asian affairs at the US National Security Council — about a variety of issues.
Yageo to raise prices
Passive component manufacturer Yageo Corp (國巨) is to raise prices for some capacitors by between 15 percent and 30 percent beginning next month in the wake of the persistent shortage of multilayer ceramic capacitors (MLCC). The price hikes are larger than April’s increase of 8 percent to 10 percent, the Chinese-language Commercial Times reported yesterday. Yageo also told downstream clients that delivery times might be extended from 1.5 months to a maximum of six months, the report said. If the short supply of MLCC persists into the third quarter, Yageo could raise the prices of some or all product lines again, the report said. Capital Securities Corp (群益證券) said in a note that the undersupply and capacity expansion of passive components might boost Yageo’s revenue and earnings in the July-to-September quarter.
Chinese applications decline
In the first five months of the year, the Investment Commission approved 55 applications by Chinese companies to invest in Taiwan, a year-on-year decline of 17 percent. The total value of the projects was US$144 million, down 6.2 percent year-on-year, according to data released by the commission on Tuesday. Overall, applications by foreign companies to invest in Taiwan dropped 6.39 percent year-on-year to 1,260 in the five-month period, while the overall value of the investments fell 35.2 percent to US$3.31 billion, the statistics showed. Meanwhile, the number of applications approved for Taiwanese firms to invest overseas fell 18.55 percent to 180 in the five-month period from a year earlier, while the value dropped 35.52 percent to US$4.91 billion, the data showed.
New home loans rise
New home loans at five major state-run banks totaled NT$34.37 billion (US$1.128 billion) last month, an increase of NT$5.03 billion from April, but a decrease of NT$6.93 billion from a year earlier, data released by the central bank on Tuesday showed. The monthly tally of new home loans at Bank of Taiwan (台灣銀行), Land Bank of Taiwan (土地銀行), First Commercial Bank (第一銀行), Hua Nan Commercial Bank (華南銀行) and Taiwan Cooperative Bank (合作金庫) is considered a gauge of the local property market, as they account for 40 percent of the market. Property transactions in the six special municipalities declined 13 percent sequentially last month, data from the six governments showed. The average interest rate declined to 1.655 percent last month, down 0.011 percentage points from the previous month, the lowest level since July 2010, data from the central bank showed.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s