ZTE Corp (中興通訊) on Friday reported its earnings have surged, without addressing the effect of US sanctions that threaten to derail its crucial global expansion into next-generation telecom networking.
The second-largest Chinese telecom gear maker, which had delayed its results release by a week to digest a seven-year ban on purchasing US components, did not offer an update on the crisis.
Instead, the Shenzhen, China-based company reported a 39 percent jump in net income for the first quarter of this year and merely said it was still assessing the effect of being placed on the US Department of Commerce’s blacklist.
“The company is currently unable to accurately and comprehensively assess its impact in this report,” ZTE said in an earnings statement released late on Friday, adding that once it has “fully and accurately estimated the impact,” it would release an updated first-quarter report.
ZTE’s plight has come to encapsulate tensions between the world’s two largest economies that threaten to stifle global trade and chill investment in technology.
ZTE was preparing to lead China’s charge into the era of blazing fast 5G wireless technology, along with local rival Huawei Technologies Co (華為技術).
Instead, it ran afoul of Washington for the second time in a year, inciting a seven-year moratorium on purchases from US suppliers for breaching a sanctions settlement last year and then lying about it.
The company finds itself grappling again with sanctions just as major wireless carriers prepare to roll out 5G networks worldwide.
ZTE, which once harbored ambitions of vying with Apple Inc in smartphones, has called the punishment “unacceptable” and threatened to take legal action.
ZTE shares remain suspended in Hong Kong and Shenzhen until further notice.
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