BEVERAGES
Bubbel Tea makers ally
More than 30 domestic bubble tea supply chains and brands, such as Inkism International Corp’s (墨力國際) Yi Fang (一芳水果茶) and Royal Tea Taiwan Co Ltd’s (貢茶國際) Gongcha (貢茶), have formed a strategic alliance to promote bubble tea in global markets, the Taiwan External Trade and Development Council (TAITRA, 外貿協會) said yesterday. Taiwan domestically sells 1.02 billion cups of bubble tea annually, about 44 cups per person, TAITRA said, citing Ministry of Economic Affairs data. TAITRA said there is a huge business potential if the newly formed alliance can help extend bubble tea’s reach.
BANKING
E.Sun ATMs to hold yen
E.Sun Commercial Bank (玉山銀行) yesterday said that automated teller machines (ATMs) at 60 of its branches in Taiwan would be upgraded before the end of the year to allow cash withdrawals of yen. All of its 138 branches nationwide are to be upgraded by February, the lender said, adding that other foreign currencies would be made available for withdrawal at select branches. Separately, the bank’s parent, E.Sun Financial Holding Co (玉山金控), reported that net income in the first three quarters of the year rose 8.1 percent annually to NT$11.58 billion (US$384.1 million).
PHARMACEUTICALS
Sinphar to receive new tech
Sinphar Pharmaceutical Co (杏輝藥品) yesterday said that after two years of negotiations, it is poised to ink a technology transfer agreement with a major Japanese eye medication supplier to expand its presence in the segment. The company is to gain proprietary aseptic manufacturing and packaging technologies, it said without identifying its partner. Sinphar said that it is aiming to introduce new eye medication products that cause less discomfort and allergic reactions. The products are slated to be launched in Taiwan, South Korea and Southeast Asian nations, it said.
RETAIL
Materials drag Taisun profit
Taisun Int’l (Holding) Corp (泰昇), which makes diapers, sanitary pads and adult incontinence products, posted a net profit of NT$63.03 million for last quarter, a 15.46 percent decrease from NT$74.56 million a year earlier, dragged down by rising raw material prices. That represented earnings per share of NT$1.77, down from NT$2.41 per share a year ago, its data showed. Sales in the third quarter of the year rose 6.24 percent annually to NT$381.61 million from NT$359.19 million a year ago, but gross margin fell to 29.55 percent from 34.47 percent due to increasing pulp prices.
INVESTMENT
Foreign holdings increase
Foreign institutional investors have increased their holdings of shares listed on the Taipei Exchange (TPEX) by nearly twofold since 2010, TPEX chairman Philip Chen (陳永誠) said yesterday. Foreign holdings rose from 11.3 percent in 2010 to 22.05 percent as of the end of Tuesday’s session, compared with 20.16 percent at the end of last year, Chen said. The semiconductor sector, which makes up 45 percent of the TPEX’s market capitalization, garnered the most ownership by foreign institutions, while the biotechnology sub index had underperformed for the most part of this year, he said. TPEX’s listed companies reported that combined sales rose 5.72 percent annually while 54.79 percent of TPEX-listed companies saw revenues growth, Chen said.
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
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
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