ELECTRICITY
PG&E files for protection
PG&E Corp yesterday filed for voluntary Chapter 11 bankruptcy protection, succumbing to liabilities stemming from wildfires in northern California in 2017 and last year. The owner of the biggest US power utility has filed a motion seeking court approval for a US$5.5 billion debtor-in-possession financing, it said in a statement. PG&E listed assets of US$71.39 billion and liabilities of US$51.69 billion in a document filed in the US Bankruptcy Court for the Northern District of California. “Throughout this process, we are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted,” PG&E interim CEO John Simon said. The company said it intends to pay suppliers in full under normal terms for goods and services provided on or after the date of the filing.
ISRAEL
Intel to invest in new plant
Intel yesterday said it is expanding its operations in Israel, where ministers said that the US chipmaker would invest about US$10 billion in a new plant. “Intel today announced it will submit a business plan to the government of Israel for continued investment in the company’s Kiryat Gat manufacturing site,” a statement from Intel’s Israeli representatives said. Minister of Finance Moshe Kahlon late on Monday said he was informed by Intel of its “unprecedented decision expected to bring thousands of jobs to the south.” Minister of the Economy and Industry Eli Cohen said that Intel had chosen to “build its most advanced plant here in Israel.” Last year, Intel had already decided on a US$5 billion upgrade to the site.
TECHNOLOGY
Bug allows eavesdropping
A FaceTime bug lets people hear and even see those they are calling on iPhones, even if the other person has not answered. When a telephone number is dialed on FaceTime — the iPhone’s calling feature — the caller can swipe up from the bottom of the screen and tap an option to add a person, video demonstrations showed. If the caller then enters their own number as that of the added caller, a group call begins, even though the person being called has not answered. The caller can then eavesdrop on the person being called, and in some demonstrations even watch them through the camera app. Declining a call breaks the connection. The bug, initially outlined by Apple Inc product and review Web site 9to5Mac.com, was reported by several media outlets. An Apple statement quoted in US media said that it was aware of the issue and has “identified a fix that will be released in a software update later this week.”
SOFTWARE
SAP to restructure
German giant SAP SE yesterday said it would launch a nearly billion-euro restructuring plan after profits stagnated last year, adding that it is on track to grow revenue and earnings this year. Net profit last year added just 1 percent to about 4.1 billion euros (US$4.69 billion), but operating profit surged 17 percent to 5.7 billion euros, on revenue up 5 percent at 24.7 billion euros. SAP said it plans to spend 800 million to 950 million euros “to further simplify company structures and processes.” Executives aim to realize a “minor cost benefit” this year, before slashing annual outgoings by up to 850 million euros from next year. The program comes on top of the group’s US$8 billion acquisition of Qualtrics, which CEO Bill McDermott said meant SAP was “poised to revolutionize the business software industry.”
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San
Clambering hand-over-hand, sweat dripping into his eyes, a durian laborer expertly slices a cumbersome fruit from a tree before tossing it down to land with a soft thump in his colleague’s waiting arms about 15m below. Among Thailand’s most famous and lucrative exports, the pungent “king of fruits” is as distinctive in its smell as its spiky green-brown carapace, and has been farmed in the kingdom for hundreds of years. However, a vicious heat wave engulfing Southeast Asia has resulted in smaller yields and spiraling costs, with growers and sellers increasingly panicked as global warming damages the industry. “This year is a crisis,”