TAIEX sheds 0.1 percent
Local shares yesterday closed slightly lower amid lingering concerns over trade frictions between the US and China. With turnover on the decline, large-cap shares across the board appeared in the doldrums, but select small and mid-cap technology shares related to 5G technology development got a boost, lending some support to the broader market. The TAIEX closed down 10.67 points, or 0.1 percent, at 10,919.02, on turnover of NT$105.647 billion (US$3.4 billion). Foreign investors bought a net NT$1.55 billion of shares on the main board, Taiwan Stock Exchange data showed.
Phoenix to build facilities
Silicon wafer recycler Phoenix Silicon International Corp (昇陽半導體) plans to spend NT$1.41 billion on new manufacturing facilities and research equipment after the company’s board approved the capital expenditure proposal on Friday last week. Phoenix Silicon plans to implement the spending proposal next year, it said in a regulatory filing. The board also approved a proposal to issue up to NT$1 billion in non-collateral convertible bonds to fund its capital spending needs. Phoenix Silicon posted record revenue of NT$252 million last month, with cumulative revenue in the first eight months rising 29.97 percent year-on-year to NT$1.76 billion.
Compal remains No. 1
Compal Electronics Inc (仁寶電腦) remained the world’s largest notebook computer assembler in the second quarter, according to a report released by International Data Corp (IDC). Compal’s shipments accounted for 30.5 percent of the global notebook computer assembly market during the second quarter, up from 26 percent in the previous quarter, the report said. According to IDC, a total of 39.7 million notebooks were produced last quarter, up 11.4 percent from a quarter earlier, translating to about 12.11 million units assembled by Compal. Quanta Computer Inc (廣達電腦) was the second-largest notebook producer with a 21 percent market share, up from a 20.3 percent in the first quarter, the report said.
CSC president appointed
China Steel Corp (CSC, 中鋼) yesterday appointed company executive vice president Wang Shyi-chin (王錫欽) as its new president to fill the vacancy left by Lin Horng-nan (林弘男). The personnel adjustments are to take effect on Monday next week, when Lin finishes his one-year term. Wang has been working for CSC for 38 years, the company said, adding that he has worked for subsidiary Dragon Steel Corp (中龍), CSC’s technology division, and its research and development division.
HKEX pushes LSE takeover
Hong Kong Exchanges & Clearing Ltd (HKEX) has started working with UBS Group AG and HSBC Holdings PLC as it begins its charm offensive to convince London Stock Exchange Group PLC (LSE) shareholders about the merits of its takeover bid, people familiar with the matter said. The banks have been brought in as advisers and are helping HKEX arrange meetings with LSE shareholders, said the people, who asked not to be identified because the information is private. The Hong Kong bourse was already working with US boutique investment bank Moelis & Co on the US$37 billion bid.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the