Thu, Dec 06, 2018 - Page 11 News List

Taiwan Business Quick Take

Staff writers, with agencies

ELECTRONICS

Largan revenue falls 28.5%

Largan Precision Co (大立光), a camera lens supplier for Apple Inc’s iPhones, yesterday posted NT$4 billion (US$129.84 million) in revenue for last month, the lowest level in seven months, amid lackluster iPhone sales. The figure — a decline of 28.5 percent from NT$5.61 billion a year earlier and of 23.08 percent from NT$5.2 billion in October, according to a filing with the Taiwan Stock Exchange — bodes ill for the company’s revenue this quarter, which is usually a strong period. The weakness is expected to continue this quarter, Largan said, adding that visibility for next month is unclear. So far this year, revenue has dropped 3.17 percent to NT$46.72 billion, from NT$48.25 billion in the same period last year, company data showed.

FOREIGN EXCHANGE

Reserves rise US$1.2 billion

The nation’s foreign exchange reserves amounted to US$461.38 billion as of the end of last month, an increase of US$1.2 billion from a month earlier, the central bank said yesterday. It attributed the increase to returns from its foreign exchange reserves management. Foreign portfolio managers held US$344.2 billion of New Taiwan dollar-denominated securities and deposits, or 75 percent of foreign exchange reserves, the bank said.

CHIPMAKERS

Global initiates takeover bid

Analog chipmaker Global Mixed-mode Technology Inc (致新) yesterday said that it plans to acquire a stake of between 5 percent and 90.07 percent in local peer Advanced Analog Technology Inc (台灣類比) for up to NT$1.4 billion to expand operational scale. Global has offered to buy Advanced Analog shares at NT$23 each, representing a premium of 36.9 percent compared with Advanced Analog’s closing price yesterday of NT$16.8. The takeover bid is to start tomorrow and end on Jan. 10, Global said in a filing with the stock exchange, adding that the bid could be extend by 50 days if needed.

INSURANCE

FSC to amend insurance law

The Financial Supervisory Commission (FSC) yesterday said that it would amend the Insurance Act (保險法) to allow compensation payouts from insurance companies after the death of an insured person younger than 15, but added that it first needs to find a solution to reduce moral hazard. The families of five people who died in a Puyuma Express train derailment on Oct. 21 cannot receive compensation, because current regulations do not allow payouts for insured people younger than 15. To prevent abuse, the regulations allow such families to receive only the insurance fees they had previously paid, with interest.

TRADE

Dispute could last decade

A US-China trade war might drag on for up to 10 more years, Foxconn Technology Group (富士康科技集團) chairman Terry Gou (郭台銘) said on Tuesday, warning of fundamental changes to export markets. Despite moves toward a possible detente, the trade tensions between the world’s two largest economies could last five to 10 years, the Economic Daily News quoted Gou as telling business leaders at a summit in Xiamen, China. The US sees China as a strategic rival and will build barriers to prevent it from acquiring key technologies and components, forcing Beijing to change the way it produces and develops technology, he was quoted as saying, adding that the global supply chain would have to restructure to be stronger and more flexible.

This story has been viewed 1251 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top