The government is considering offering low-interest loans, tax breaks and other incentives to encourage consolidation in the nation's liquid-crystal-display (LCD) panel industry, according to a study released by the Presidential Office.
The study, given to President Chen Shui-bian (
Competitiveness
During a meeting with Chen and his economics panel, Shih suggested that the government encourage mergers among local flat-panel display makers to strengthen their competitiveness and reduce risk in the capital-intensive industry.
Two or three big flat-panel makers would be enough for the overcrowded sector, said Shih, who doubles as head of the Technology Management Department at National Tsinghua University.
Agreeing with Shih, Rock Hsu (許勝雄), chairman of the Taiwan Electrical & Electronic Manufacturers' Association (電電公會), said companies need to reach an appropriate scale to stay competitive. Hsu also attended the presidential meeting on Wednesday.
The nation's flat-panel display industry is suffering from excess investment, with major players such as AU Optronics Corp (友達光電) and Chi Mei Optoelectronics Corp (奇美電子) announcing delays last month in the construction of their next-generation factories.
Against this backdrop, local institutional investors remain bearish on the industry, while a foreign brokerage house forecast that Chi Mei could report a 66 percent decline year-on-year in its third-quarter earnings report.
Chi Mei is scheduled to release its quarterly report next Thursday, a day after AU Optronics releases its results.
Snubbed
AU Optronics chairman Lee Kun-yao (李焜燿) and HannStar Display Corp (瀚宇彩晶) chairman Chiao You-chi (焦佑麒), however, snubbed the government's plan to promote mergers between flat-panel display makers.
"We will consider forming alliances [with rivals] instead of pursuing mergers," a Chinese-language newspaper quoted Lee as saying yesterday. AU Optronics is the nation's largest and the world's third-largest flat-panel display maker.
There was no problem with the number of members in Taiwan's flat-panel "family," another Chinese-language business daily reported, citing Chiao. HannStar, one of Taiwan's smaller suppliers, is considered a possible acquisition target.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
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
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
Arm Holdings PLC approached Intel Corp about potentially buying the ailing chipmaker’s product division, only to be told that the business is not for sale, according to a source with direct knowledge of the matter. In the high-level inquiry, Arm did not express interest in Intel’s manufacturing operations, said the source, who asked not to be identified because the discussions were private. Intel has two main units: A product group that sells chips for personal computers, servers and networking equipment, and another that operates its factories. Representatives for Arm and Intel declined to comment. Intel, once the world’s largest chipmaker, has become the
RSS