INSURANCE
Farglory affected by Dome
Farglory Life Insurance Co (遠雄人壽), an affiliate of Farglory Group (遠雄集團), has been affected by the troubled undertaking by its parent to build the Taipei Dome, the Financial Supervisory Commission told lawmakers during a question-and-answer session at the legislature in Taipei. The life insurer arm of the conglomerate has invested about NT$2.05 billion (US$67.94 million), but the project shows a book value of NT$1.88 billion, leading to a “relatively small” loss for the carrier, the commission said. The life insurer also owns a 7.29 percent stake in Farglory Land Development Co (遠雄建設), translating to an additional exposure of about NT$1.71 billion, the commission said.
BANKING
Taishin opens in Brisbane
Taishin International Bank (台新銀行) yesterday said it has opened a new branch in Brisbane, Australia. The branch is the lender’s fourth overseas operation. Other Taiwanese lenders have set up 11 branches and a representative office in Australia. Taishin generated 15 percent of its profits from overseas as of the end of last quarter. The lender is hoping to see its Brisbane branch break even before the end of the year and raise overall overseas earnings contribution to 30 percent, it said. The bank said it is hoping to tap into opportunities presented by the agricultural sector in Queensland while meeting the nation’s stringent compliance standards.
AUTOMAKERS
Pan German mulls debut
Pan German Universal Motors Ltd (汎德永業), which sells BMW and Porsche cars in the domestic market, yesterday said it plans to hold an extraordinary shareholders’ meeting on Dec. 19 to discuss a proposal to make its debut on the Taipei Exchange. The firm, which earlier this year raised money by issuing 2.09 million new shares, has paid-in capital of NT$717.41 million. The firm posted sales of NT$25.66 billion for the first three quarters of this year, representing a 1.82 percent annual increase, company data showed.
TECHNOLOGY
Ichia revenue jumps 34.35%
Handset keypad maker Ichia Technologies Inc (毅嘉科技) yesterday posted revenue of NT$674.19 million for last month, up 34.35 percent from NT$501.81 million a year earlier. Revenue contracted 2.56 percent from the prior month’s NT$691.92 million, Ichia’s filing with the Taiwan Stock Exchange showed. The monthly result brought the firm’s accumulative revenue to NT$5.92 billion in the first 10 months, surging 19.86 percent from the same period last year, according to the filing.
STOCK MARKET
Gains capped by realization
The TAIEX closed above 10,800 points yesterday, but the gains were limited as investors locked in their profits in select large-cap electronics stocks, such as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), dealers said. Buying in the non-high-tech sector lent some support to the broader market, preventing the weighted index from falling into negative territory, dealers said. Despite the upturn, sentiment remained cautious amid anxiety among investors over US President Donald Trump’s impending selection of a US Federal Reserve chair, as his choice could affect fund flows in global financial markets, leading to reluctance to chase prices, dealers said. The weighted index closed up 12.56 points, or 0.12 percent, at 10,806.36. Turnover totaled NT$126.97 billion.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure