Stocks dropped, led by exporters such as Quanta Computer Inc (廣達電腦), after US Secretary of State Colin Powell said a US invasion of Iraq may increase terrorist activity at home.
One portfolio manager said yesterday the threat of terrorism in the US will dampen consumer confidence and weigh on companies' earnings.
"The corporate outlook for this year is bleak as a possible war and terrorist attacks will weigh on the world economy and Taiwan's exports," said Simon Chao, who helps manage US$20 million in equities at President Investment Trust Corp (
Chao sold shares in textile and other traditional manufacturers.
The TAIEX shed 116.91 to close at 4,507.96, its lowest close this year. More than eight stocks declined for every one that gained. Trading was NT$57 billion (US$1.6 billion), or 33 percent below the daily average in the past three months.
Quanta fell NT$1, or 1.7 percent, to NT$57. Dell Computer Corp is Quanta's No. 1 client. Hon Hai Precision Industry Co (鴻海精密), a computer-cable-connector maker that counts Hewlett-Packard Co as its client, fell NT$3.5, or 3.2 percent, to NT$106.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
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