Yuan deposits decline
Yuan deposits held by local banks fell 2.17 percent to 301.792 billion yuan (US$43.75 billion) at the end of last month, the central bank said yesterday. That marked the second straight month of decline after deposits fell 2.23 percent to 308.48 billion yuan the previous month, as well as the lowest in four years, as the Chinese currency continued to weaken against the greenback amid concern over increasing US-China trade tensions. Yuan deposits at domestic banking units fell 1.93 percent to 267.521 billion yuan last month and those at offshore units fell 3.95 percent to 34.271 billion yuan, the central bank said.
CSC’s profit slumps
China Steel Corp (CSC, 中鋼), Taiwan’s only integrated steelmaker, yesterday posted a pretax profit of NT$2.78 billion (US$90 million) for last month, down 3.88 percent from NT$2.89 billion a year earlier and 22.12 percent lower than the previous month’s NT$3.57 billion, due to falling prices and shipments. Consolidated sales were NT$34.53 billion, down 5.23 percent year-on-year, but up 16.89 percent month-on-month, the Kaohsiung-based company’s data showed. In the first 11 months of the year, pretax profit totaled NT$29.94 billion, up 49.7 percent from NT$20 billion in the same period last year, the company said.
Flexium capex approved
Flexium Interconnect Inc (台郡), a Kaohsiung-based supplier of flexible printed circuit boards, yesterday said its board of directors had approved an NT$8 billion capital expenditure (capex) budget to meet a customer’s demand. Flexium said in a Taiwan Stock Exchange filing that the budget is to be used mainly to build new production capacity, adding that the company would adjust the budget subject to customer demand and the market situation. The company did not identify the customer in the filing, although it is one of the key suppliers for Apple Inc’s iPhones.
Win to end GDR program
Win Semiconductors Corp (穩懋), the world’s largest pure-play gallium arsenide foundry, yesterday said its board of directors had resolved to terminate the firm’s global depositary receipt (GDR) program to cut management costs. As of Saturday, the firm had no outstanding GDRs on the Luxembourg Stock Exchange, Win Semiconductors said in a regulatory filing. In the first three quarters of the year, the company reported cumulative sales of NT$13.1 billion and net income of NT$2.36 billion, or earnings per share of NT$5.59.
Wan Hai to buy containers
Container shipper Wan Hai Lines Ltd (萬海航運) yesterday said its board of auditors had agreed to purchase 32,000 twenty-foot-equivalent unit (TEU) dry containers to develop its business. The US$57.13 million deal is to be reviewed by the company’s board of directors. The announcement comes after the company last month announced that it was ordering 20 full-container vessels from Chinese and Japanese shipbuilders, reflecting the company’s positive outlook for the industry. On Nov. 12, Wan Hai said it would order 12 full-container vessels with 2,038 TEU from China Shipbuilding Trading Co (中國船舶工業貿易) and Guangzhou Wenchong Shipyard Co (廣州文沖船廠) for US$315.94 million, as well as another eight full-container vessels with 3,036 TEU from Japan Marine United Corp for ￥37.68 billion (US$332.7 million).
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be