Chung Shing goes to Land Bank
The state-run Land Bank of Taiwan (土地銀行) will take over management of smaller rival Chung Shing Bank (中興銀行) after the government failed in three attempts to sell the bad loan-laden lender. On Oct. 5, Land Bank will take over Chung Shing from the government's Central Deposit Insurance Corp (中央存保), which has insufficient resources to administer the lender, the Ministry of Finance's Bureau of Monetary Affairs said in a statement. The government said Land Bank was chosen because the latter was one of the bidders for Chung Shing in the government's second auction attempt, it said. The transaction leaves the government responsible for Chung Shing, which has about NT$88.5 billion (US$2.5 billion) of bad loans, for at least six months, the statement said. Central Deposit started supervising the struggling lender in 2000 and was used by the government to seize the bank in October 2001 to protect depositors.
Tyan Computer opens center
Tyan Computer Corp (泰安電腦), part of the Mitac Group (神通集團) that specializes in designs and manufactures system board products, yesterday announced the opening of its new Taipei Operating Center in Neihu. President and CEO Symon Chang (張彤) -- who founded the Silicon Valley company in 1989 -- said the establishment of the center will help the company capitalize on a larger pool of engineering talents in the region and gain faster understanding of market changes. "With proximity to manufacturing partners in Asia, coupled with support from Mitac in providing full-system or chassis solutions, this new center will strengthen our competitiveness in this line of business," Chang said. Tyan had NT$2.6 billion in revenues in 2001 and is targeting NT$3 billion in revenue for this year, Chang said. In addition to Mitac, Tyan's major shareholders include Elitegroup Computer System Co (精英電腦) and Orient Semiconductor Electronics (華泰電子), he added.
Flat-panel makers facing slump
HannStar Display Corp (瀚宇彩晶) said it and other flat-panel display makers may be forced to cut profit targets because prices are falling more than expected, suggesting the industry may no longer be immune to the global computer slump. "We are still evaluating the possible impact in the fourth quarter," said Hannis Chang, HannStar's director of finance. "It's still too early to say whether all the companies will cut profit expectations and by how much." HannStar earlier this year forecast it would post profit of NT$8.2 billion (US$235 million) for the full year after earning NT$3.4 billion in the first half.
Fubon fails to sell bank shares
Fubon Financial Holding Co (富邦金控) failed to sell its stake in United World Chinese Commercial Bank (世華銀行) after receiving bids below its asking price. Fubon, which began auctioning 559.8 million shares it owns in the bank yesterday at a minimum price of NT$28, will resume the sale today, the stock exchange said in a statement.
NT$ drops to five-month low
The New Taiwan dollar had its lowest close in more than five months on speculation global fund managers converted out of the currency after selling stocks in Taiwan, which in turn weakened the local currency, traders said. The unit yesterday fell NT$0.065 against the US dollar to close at NT$34.9 on the Taipei foreign exchange market. The turnover was US$711 million, up from the previous day's US$446 million. Throughout the session, the local currency traded between NT$34.77 and NT$34.925 against the greenback.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective
EARNINGS: The chipmaker said the earthquake that struck last month, along with several significant aftershocks, did not cause any structural damage to its fabs Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said revenue for this quarter would be near the lower end of its guidance due to a magnitude 6.4 earthquake on the Richter scale that struck southern Taiwan last month. The quake, which struck the southeastern part of Chaiyi County on Jan. 21, is estimated to cause TSMC losses of about NT$5.3 billion (US$161.4 million) in the first quarter, TSMC said in a statement. However, the world’s largest contract chipmaker said its gross margin and operating margin forecasts in the quarter remain unchanged, as well as its full-year business outlook. TSMC said the earthquake, along with