MANUFACTURING
IEK lowers output forecast
The Industrial Economics and Knowledge Center (IEK, 產業經濟與趨勢研究中心) yesterday lowered its forecast for the local manufacturing sector’s production value growth, taking into account trade friction between the US and China. The output of the manufacturing sector is expected to grow 3.27 percent annually to NT$18.89 trillion (US$616.68 billion) this year, the center said. Taiwanese manufacturers should diversify their production bases and keep a close eye on fluctuations on the global foreign exchange market, it said. In April, the center estimated a 3.29 percent output increase by local manufacturers.
OPTICAL
Firms to expand capacity
Catalyzed by a trend toward multiple lenses in smartphones and surging demand for telematics, demand for lenses has soared amid severe undersupply. In response to demand from clients, several local lens makers — Largan Precision Co (大立光), Genius Electronic Optical Co (玉晶光), Newmax Technology Co (新鉅科), Calin Technology Co (佳凌), Glory Science Co Ltd (光燿科) and Ability Optoelectronics Technology Co Ltd (先進光) — are expected to substantially expand their capacities, the Chinese-language Economic Daily News reported yesterday, citing industry sources. The overall capacity of local lens makers was forecast to increase 50 percent to 100 percent over the next three years, the newspaper said.
STORAGE
Ritek to trim paid-in capital
Ritek Corp (錸德), the nation’s leading optical disc maker, on Wednesday said that it plans to reduce its paid-in capital by 27.31 percent from NT$17.67 billion to NT$12.84 billion to improve its capital structure and offset accumulated losses. The capital reduction was scheduled to take effect yesterday. Ritek shares yesterday rose 3.36 percent, compared with the broader market’s 0.07 percent decline, and have risen 230.47 percent this year, Taiwan Stock Exchange data showed.
CHIPMAKERS
Winbond issues bonds
Winbond Electronics Corp (華邦電子), the world’s third-largest NOR flash memorychip supplier, has issued NT$10 billion of secured ordinary corporate bonds, the nation’s largest bond issuance of its kind this year. The bonds carry a fixed rate of 1 percent per annum and the proceeds would be used to finance capital expenditure, repay bank loans and increase working capital, Winbond said on Tuesday. The company plans to build a new fab in Kaohsiung costing NT$355 billion, as its 12-inch fab in the Central Taiwan Science Park in Taichung is expected to reach full production capacity next year.
SOLAR ENERGY
India duty could spur sales
India’s plan to cut imports of Chinese solar cells and modules by imposing a safeguard duty might have the opposite effect in the short term, ICBC International Research Ltd (工銀國際證券) said yesterday. Stockpiles could rise rapidly as Indian developers hoard more modules before the proposal to impose a 25 percent safeguard tariff is expected to take effect in the next two to three months, the firm said in a note. Taiwanese solar cell and module makers would be covered by India’s safeguard duty, the Bureau of Foreign Trade said on Wednesday. Taiwan sold US$92.07 million of solar cells and modules to India last year, only 2.23 percent of the South Asian country’s total imports, the bureau said.
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