■ Small gain seen for chipmakers
Taiwan's chip companies are expected to see an 8.8 percent increase in sales to NT$264.3 billion (US$8.56 billion) in the current quarter from a year ago, the Taiwan Semiconductor Industry Association's (TSIA, 台灣半導體協會) said in a report released yesterday. The association attributed the smaller increase in chipmakers' sales to easing inventory pressure on their customers and resilient consumer electronic products, according to the report. That will be a slight reduction from last quarter's NT$282.1 billion, according to the TSIA's latest statistics. The TSIA said the first quarter should be the worst period for contract chipmakers in terms of factory usage due to customers' trying to digest their inventories. "Factory utilization should start to pick up in the second quarter," the TSIA said. Memory chipmakers should expect a small sales increase in the current quarter due to falling prices, it said. For the full year, the local chip industry is expected to have a 6.7 percent expansion to NT$1.17 trillion from NT$1.01 trillion last year.
■ China Steel to boost dividend
China Steel Corp (中鋼) plans to increase its dividend and annual bonuses to employees this year after posting higher profit, a Chinese-language newspaper reported yesterday, without saying where it obtained the information. China Steel plans to give 5 percent of its profit to its employees as bonus, up from 3 percent last year, the paper said. It plans to pay a dividend of NT$4.40 per share based on last year's earnings, up from NT$3.35 last year, it said. China Steel will hold a board meeting today to discuss the proposals, the paper said. The firm reported a profit for last year of NT$51.6 billion on Jan. 28, up from NT$37 billion in 2003.
■ Overseas sale of shares mulled
The government may agree to sell a 1.4 billion share stake in Chang Hwa Commercial Bank (彰化銀行) overseas next month, a Chinese-language business daily said, citing a report to the government by the bank's management. Chang Hwa's per share value is in the range of NT$16 to NT$15, less than Tuesday's closing price of NT$20.40, the paper said. The stake, based on Tuesday's closing price, would be worth NT$28.6 billion (US$922.6 million) and would account for 29 percent of the outstanding shares.
■ Quanta to diversify
Quanta Computer Inc (廣達電腦), the world's biggest maker of notebook computers, plans to start producing auto electronics products to diversify its range, said president Michael Wang (王震華). The company is following Hon Hai Precision Industry Co (鴻海精密) and Asustek Computer Inc (華碩電腦) in expanding its product line. Quanta, which is starting to produce flat-panel televisions, may start selling the automotive products under its brand name.
■ Better Spanish trade ties sought
The government has listed Spain as one of its key trade targets with efforts being made to boost Taiwan-Spain economic and trade relations. Walter Yeh (葉明水), vice president of the Taiwan External Trade Development Council (TAITRA, 外貿協會), was scheduled to sign a pact with Jose Maria Isardo, the general-director of the Madrid Chamber of Commerce, at the chamber's Madrid headquarters to boost the council's cooperative relations with the Spanish business group, an economics official at the Taipei Economic and Cultural Office in Madrid said on Tuesday. TAITRA has also decided to open a branch office in Barcelona to promote Taiwan-Spain trade and investment relations, according to the agency.
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TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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