TAIEX closes higher
Local shares yesterday closed higher, but the upturn was limited because of technical resistance and lingering concerns over trade frictions between the US and China. Investors sold off large-cap stocks in the bellwether electronics sector later in the session, forcing the broader market to give up most of its early gains, dealers said. The TAIEX closed up 14.30 points, or 0.14 percent, at 10,398.41 on turnover of NT$106.001 billion (US$3.38 billion). Foreign institutional investors sold a net NT$4.36 billion of shares, compared with a net sell of NT$10.45 billion on Friday last week, Taiwan Stock Exchange data showed.
Minister eyeing NT$100bn
Local businesses with overseas operations are expected to pour at least NT$100 billion into the domestic economy before the end of the year, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. At a meeting of the legislature’s Economics Committee, Shen said he expects NT$400 billion to be invested over the next three years. So far this year, 55 Taiwanese companies have pledged to invest NT$288.4 billion in the nation, which would create jobs and boost the local economy, the ministry said last week.
Electric models double
The nation manufactured a record 91,000 electric scooters last year, almost double the number in 2017, the Ministry of Economic Affairs reported last week. The number has been on the rise since 2014, when only 5,062 scooters were manufactured, and it increased to 50,183 in 2017, the ministry said. The government in 2016 began offering incentives for people to replace gasoline-powered scooters with electric models, which helped push up the total number of scooters sold in the nation to 1.1 million in 2017, but the number dropped to 947,000 last year, the ministry said.
Switch boosts local firms
Nvidia Corp’s comments last week about a positive outlook for Nintendo Co’s Switch gaming machine and gaming laptops are boding well for companies in the supply chain in the coming quarters, including chipmaker Macronix International Co Ltd (旺宏電子) and sensor maker PixArt Imaging Inc (原相科技), as well as gaming computer developers Micro-Star International Co (微星科技) and Gigabyte Technology Corp (技嘉科技), Yuanta Securities Investment Consulting Co (元大投顧) said yesterday. The US-based maker of video game graphics chips last week reported better-than-expected profit for the first quarter and said the inventories situation had improved.
Rescue package in doubt
Japan Display Inc, a struggling supplier of screens for Apple Inc’s iPhone, needs to find an additional investor to get a ￥80 billion (US$727 million) rescue package from a group of Taiwanese and Chinese firms, the Asahi newspaper reported. Negotiations with the consortium will not advance until an extra source of capital is found, Asahi said, citing unnamed people familiar with the matter. Japan Display on Saturday said in a statement that there was no truth to the report, without elaborating. The new investor, which would have to invest tens of billions of yen, is necessary because the backers have discovered that Japan Display is in far worse shape than was estimated when the infusion was first announced last month, the report said.
STEPPING UP: The firm has also asked employees to work in split shifts from this week and to halt all but essential overseas business travel from next month Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has implemented a remote work policy for employees not on production lines in an attempt to curb the spread of COVID-19, the world’s largest contract chipmaker said yesterday. This is the first time in the Hsinchu-based company’s history that it has launched a large-scale remote work policy, joining global technology companies, such as Apple Inc and Google, that encourage employees to work from home. The chipmaker has also asked employees to work in split shifts from this week, it said. As the number of virus infections continues to climb worldwide, TSMC has urged employees to halt unnecessary
Manufacturers are on a mission to produce desperately needed medical ventilators for the COVID-19 pandemic, even if it means converting assembly lines now making auto parts. Along with a shortage of masks and gloves, the spread of COVID-19 to almost every corner of the globe has highlighted a great need for specialized machines that help keep severely afflicted patients alive. “As the global pandemic evolves, there is unprecedented demand for medical equipment, including ventilators,” GE Healthcare chief executive officer Kieran Murphy said. The group has hired more workers and is making ventilators around the clock. Swedish group Getinge AB is also ramping up output
Facing the rapidly evolving global COVID-19 pandemic, Citibank Taiwan Ltd (台灣花旗) has proactively taken precautionary measures. “The health and safety of our colleagues and their families, as well as our clients and the communities we serve, are of the utmost importance. We continue to take proactive measures to preserve their well-being while we maintain our ability to serve our clients,” Citibank Taiwan chairman Paulus Mok (莫兆鴻) said in a statement yesterday. “We have local and regional contingency plans in place, and we have well-established business continuity plans for the firm. We are monitoring the situation closely, adjusting our operations accordingly,
UPGRADE AND TRANSFORM: Although the cross-strait trade deal might remain, the Ministry of Economic Affairs said businesses should prepare for any disruptions Taiwan might face a decline in foreign trade with China if the cross-strait Economic Cooperation Framework Agreement (ECFA) ends this year, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. The agreement, which was signed and put into effect in 2010 to reduce trade barriers across the Taiwan Strait, is expected to end this year, despite not having an exact termination date. “We have not received notification [from China] that it wishes to terminate ECFA,” Shen told reporters prior to attending a meeting at the Legislative Yuan. “Even if we are notified, the agreement would only cease after six months.” While acknowledging the