The Ministry of Economic Affairs yesterday said it has approved of NT$504.7 billion (US$16.09 billion) in investments as another four companies joined a government program aimed at boosting investment in the nation.
As a trade dispute between the US and China continues, the ministry has approved 102 companies returning to invest in the nation, providing up to 43,900 job opportunities, while another 50 companies are waiting in line.
TXC Corp (台灣晶技), the nation’s leading quartz crystal components maker, is to invest NT$2.5 billion to expand production of parts using 5G and microelectromechanical system technologies at the company’s plant in Taoyuan’s Pinzheng District (平鎮).
Jexsee Electronics Co Ltd, (全一電子), which specializes in the production of TVs, plans to relocate production from China and invest more than NT$1.5 billion by setting up a smart production plant in Taichung Industrial Park (台中工業區).
The company is to create an estimated 300 jobs.
Machinery parts manufacturer Feedback Tech Corp (翔名科技), which produces semiconductors, display panels and DRAM, is to invest NT$1.5 billion in a new plant in Hsinchu City’s Xiangshan District (香山) and recruit about 38 people.
The world’s second-largest manufacturer of hinges used in laptops, display panels and other electronic devices, Jarllytec Co Ltd (兆利科技), plans to invest NT$1.8 billion to set up a new plant in the New Taipei Industrial Park (新北產業園區) and create an estimated 70 job opportunities.
The ministry yesterday also approved three small and medium-sized enterprises’ applications to join a similar government program.
Atom Health Corp (亞拓醫療), Propower Fastener Corp (鉑川) and Pang Chan Metals Co Ltd (邦昌金屬) are to invest more than NT$1 billion to increase production in Taiwan and create about 130 jobs.
With US President Donald Trump on Thursday announcing another round of 10 percent tariffs on US$300 billion of Chinese goods, the Bureau of Foreign Trade warned of a bigger impact on Taiwan’s economy, which depends heavily on exports.
The potential tariffs include products such as smartphones, PCs and other communication devices, steel products and machinery equipment, as well as other consumer goods, the bureau said, adding that original equipment manufacturers would be directly affected, while machinery equipment makers would see a decrease in Chinese investment.
However, the textile industry would suffer less of an effect as a majority of companies have relocated production sites from China, the bureau said.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
DIVERSIFICATION: Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng (陳錦榮) said in a statement on Thursday. “Its growth