Printed circuit board (PCB) maker Dynamic Electronics Co (定穎電子) is to lay off 87 percent of its employees as part of its restructuring plan to streamline production.
The company plans to turn its plant in Gueishan District (龜山), Taoyuan, into a research-and-development center and sales office, while reallocating production to its overseas plants, it said in a filing with the Taiwan Stock Exchange yesterday.
Dynamic has plants in Kunshan, Jiangsu Province, and Huangshi, Hubei Province, in China.
The adjustments reflect the effects of an escalating US-China trade dispute, which has depressed the global economy and consumer spending.
The company is to lay off 420 employees on Oct. 15, a statement posted by the Taoyuan Department of Labor on its Web site said.
Dynamic has 490 employees in Taiwan, the statement said.
The layoff would be the second biggest in Taoyuan, after flexible PCB supplier Career Technology Co (嘉聯益), a supplier to Apple Inc, slashed 434 jobs in March.
Dynamic is to sell the Taoyuan fab’s facilities and equipment via an auction on Oct. 18.
The company eked out a net profit of NT$12 million (US$381,546) last quarter, compared with losses of NT$39 million in the first quarter and losses of NT$195 million in the same period last year.
Gross margin rose to 10.5 percent last quarter, from 8.8 percent a quarter earlier and 6.6 percent a year earlier.
Revenue last quarter grew 5.9 percent sequentially and 2.9 percent from a year earlier to NT$3.23 billion, with PCBs used in automotive items contributing 42 percent to total revenue.
The company reported losses of NT$240 million for last year, its annual report showed.
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
RSS