STOCK MARKET
TAIEX takes a tumble
The market plunged more than 100 points to close below 10,900 points yesterday in the wake of an overnight decline on Wall Street, amid renewed concern over the eurozone caused by a political standoff in Italy. The market was also under pressure over fears of a looming trade war between the US and China. The TAIEX closed down 142.95 points, or 1.30 percent, at 10,821.17, with turnover of NT$160.73 billion (US$5.35 billion). According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$15.29 billion worth of shares on the main board.
MANUFACTURING
Walsin forecast improves
Capital Investment Management Corp (群益投顧) yesterday revised upward its earnings forecast for Walsin Technology Corp (華新科技) to NT$30.05 from NT$26.37 per share this year, after the nation’s second-largest passive component supplier posted better-than-expected financial results for last month. Due to price hikes, Walsin reported earnings of NT$2.15 per share, up 551.25 percent year-on-year, while sales grew 87.44 percent to NT$3.13 billion. Walsin shares yesterday closed 1.64 percent higher at NT$372.5.
E-COMMERCE
PChomestore to go private
The Taipei Exchange yesterday said PChomestore Inc (商店街) would stop trading its shares on the over-the-counter board on June 22, after the company’s board decided earlier this month to take the e-commerce operator private. PChomestore, a subsidiary of PChome Online Inc (網路家庭), announced a NT$363 million privatization plan in a bid to pursue greater returns on investment. PChome and its partners plan to buy back PChomestore shares on the open market at NT$44 per share from June 22 to Aug. 10. PChomestore shares yesterday closed 0.12 percent higher at NT$43.05.
FOOD PROCESSING
Namchow ahead of schedule
Namchow Holding Co (南僑投資控股) is expected to see its total annual revenue reach NT$20 billion next year, one year ahead of schedule, chairman Alfred Chen (陳飛龍) told shareholders yesterday, adding that he is optimistic about the group’s business performance this year. The group plans to submit an application to the Chinese securities regulator next month or in July to launch an initial public offering on the Shanghai Stock Exchange, Chen said.
FINANCIAL SERVICES
CCIA spends on start-ups
China Development Financial Holding Corp (中華開發金控) yesterday said its CDIB Capital Innovation Accelerator (CCIA, 開發創新加速器), which facilitates the development of emerging companies in Taiwan, has invested in six start-ups since becoming operational a year ago. The start-ups include artificial intelligence, Internet of Things, mobile Internet and next-generation e-commerce businesses, CDIB Capital International Corp (中華開發資本) president Ho Chun-huei (何俊輝) said.
PUBLIC RELATIONS
Hoffman opens in Taipei
The Hoffman Agency, a global public relations firm, yesterday announced the establishment of its Taipei office this month, making it the firm’s eighth office in Asia. Headquartered in San Jose, California, the firm said in a news release that it would focus on helping Taiwanese tech companies and start-ups enter international markets.
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
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