Business Briefs

STAFF WRITER, WITH AGENCIES

Thu, Aug 30, 2007 - Page 11

Trade with China increases

Indirect trade between Taiwan and China in the six months to June rose 13.3 percent from the same period a year earlier to US$46.49 billion, the Board of Foreign Trade said yesterday.

The figure accounted for 21.4 percent of Taiwan's total external trade during the six-month period, compared with 20.1 percent in the same period a year ago, it said, citing statistics from Taiwanese and Hong Kong customs.

Taiwan registered a trade surplus with China of US$20.21 billion for the period, up 11.6 percent from a year earlier, it said.

Exports to China rose 12.8 percent year-on-year to US$33.35 billion, and imports were up 14.7 percent at US$13.14 billion.

Six-month shipments to China accounted for 29.3 percent of the nation's total exports during the period, compared with 27.9 percent a year earlier, it said.

Imports from China made up 12.7 percent of total imports, up from 11.7 percent the year before, it said.

Tatung to invest in WiMAX

Home appliances maker Tatung Co (大同) said its board approved a plan to invest NT$1.1 billion (US$33.2 million) in its telecom subsidiary by issuing 110 million new shares, the company said in a filing with the Taiwan Stock Exchange yesterday.

The recapitalization plan for Tatung Telecom Corp (大同電信) is to raise finance for the construction of a new WiMAX network, the filing said.

Tatung Telecom, established this year with NT$100 million in capital, is one of six companies that won a WiMAX license in an auction last month.

Sumco to up wafer output

Sumco Techxiv Corp, a Japanese silicon wafer maker, will invest an additional ¥11 billion (US$96 million) to increase production of 300mm wafers at its Taiwanese unit.

The eventual ¥53 billion investment will raise monthly capacity at Formosa Sumco Technology Corp (台塑勝高科技) to 160,000 wafers by the end of next year. The unit started production earlier this year with a capacity of 50,000 wafers a month.

Sumco Techxiv's total capacity in Japan and Taiwan will expand to 460,000 wafers by June 2009 from the current 135,000.

The Tokyo-based company announced the investment in a statement to the Tokyo Stock Exchange yesterday.

Sumco Techxiv is a unit of Sumco Corp, the world's second-largest maker of silicon wafers.

Chi Mei sets up new venture

Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest liquid-crystal-display (LCD) maker, said it will invest NT$2.4 billion in a new business to make small and medium-sized display modules.

The company, Chi Hsin Electronics, will begin constructing a new factory in Tainan by the end of the year, with production to start "within a quarter or two," spokeman Eddie Chen (陳彥松) said yesterday.

Bonds rise on fund shifts

Government bonds rose yesterday on speculation fund managers were shifting money to fixed-income securities after global stocks slumped.

The price of the benchmark 10-year note due in March 2017 rose 0.1211, or NT$121 per NT$100,000 face amount, to 95.6231. The yield on the note fell 1.5 basis points to close at 2.393 percent on the GRETAI Securities Market.

The New Taiwan dollar, meanwhile, extended losses against the US currency to a seventh day as foreign investors reduced holdings of Taiwanese equities.

The NT dollar fell NT$0.058 percent to close at NT$33.06 on the Taipei Forex Inc on turnover of US$606 million.