TSMC hit by Huawei jitters
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday fell amid concerns over the company’s position as a supplier for Chinese telecom equipment maker Huawei Technologies Co (華為), which was on Thursday last week blacklisted by the US government. Selling of TSMC led a decline in local semiconductor shares as investors took cues from a 4.02 percent fall in the Philadelphia Semiconductor Index overnight. Shares of TSMC fell 1.68 percent to close at NT$234, while the TAIEX ended up 0.64 percent at 10,464.50. Foreign institutional investors sold a net NT$7.07 billion (US$224.7 million) of shares yesterday after a net sell of NT$4.50 billion on Monday, Taiwan Stock Exchange data showed.
Ban might benefit Taiwan
Taiwan is likely to benefit from Washington barring US companies from doing business with Huawei Technologies Co (華為), as other smartphone brands would place orders with Taiwanese suppliers, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. Speaking on the sidelines of a technology forum in Taipei, Shen said that Huawei’s competitors are expected to see shipments rise and Taiwanese suppliers could secure more orders from other brands. Local suppliers have flexible strategies and would be able to position themselves well in a new global trade environment, he said.
Weltrend upbeat for this year
Weltrend Semiconductor Inc (偉詮電子) yesterday said the rate of revenue growth this year would outpace last year’s 7.83 percent as it expressed optimism about its business outlook, despite a US-China trade spat and increasing economic uncertainty worldwide. The company reported that revenue last quarter fell 15 percent annually to NT$500.44 million. However, a 399 percent increase in non-operating income to NT$131.93 million lifted the company’s net income by 152 percent to NT$2110.78 million, it said. Earnings per share rose from NT$0.2 to NT$0.62 over the period, it added.
Xinyi raises US$465m in IPO
Xinyi Energy Holdings Ltd (信義能源控股), a Chinese solar farm operator, has raised US$465 million after pricing its Hong Kong initial public offering (IPO) near the bottom of a marketed range, people with knowledge of the matter said. The unit of Xinyi Solar Holdings Ltd (信義光能控股) sold 1.88 billion shares at HK$1.94 apiece, the people said. Xinyi Energy offered the shares at HK$1.89 to HK$2.35 each, according to its prospectus. It plans to begin trading on Tuesday next week. BNP Paribas SA was the sole sponsor for the IPO.
Central bank details plan
The People’s Bank of China yesterday unveiled the details of a three-phase plan to reduce the reserve requirement ratio for county-level rural commercial banks. The central bank announced the move on May 6 and launched the first phase on Wednesday last week. The reduction would free about 280 billion yuan (US$40.54 billion) for the rural banks, the central bank said. The plan aims to help struggling companies amid an economic slowdown, it said, adding that the remaining two phases would be launched on June 17 and July 15. The first phase saw the ratio reduced by 100 basis points, the central bank 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