Wed, May 22, 2019 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with agencies


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.

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