TSMC books disruption loss
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on Friday said that it incurred a loss of NT$6.1 billion (US$197.9 million) due to a production disruption caused by substandard chemicals and the company would book the loss this quarter. On Feb. 15, TSMC said that the incident would reduce sales by US$550 million and drag down its earnings per share by NT$0.42 in the first quarter. The incident was the second major incident for TSMC since August last year, when its systems were infected with a virus, causing NT$2.6 billion in losses.
Cheng Shin’s rating cut
S&P Global Ratings on Friday lowered its rating for tire manufacturer Cheng Shin Rubber Industry Co (正新橡膠) to “BB+” from “BBB,” with a stable outlook. S&P said in a statement that the rating cut came as Cheng Shin’s profitability and cash flow generation have weakened over the past few quarters and the prospects of a significant improvement in profitability over the next one to two years are limited.
Tong Yang revenue slips
Automotive metal sheet and bumper manufacturer Tong Yang Industry Co (東陽) on Thursday reported NT$254 million in pretax profit for last month. That translated into pretax earnings per share of NT$0.44, the company said in a statement. Revenue last month plunged 13.59 percent year-on-year to NT$1.92 billion from NT$2.22 billion in January last year, mostly due to weak car sales in China. The company’s sales in the original electronics manufacturing business almost halved to NT$506 million last month, from NT$909 million, the company said.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
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
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to