■ Electronics
Compal, Flextronics link up
Compal Electronics Inc (仁寶) and Flextronics International Ltd will form a venture in Shanghai, the Commercial Times said, without saying where it obtained the information. Compal will invest US$6 million to take a 40 percent stake in the new company, to which Compal will outsource notebook and handset manufacturing services, the Taipei-based newspaper said, without providing additional details. Compal is the world's second-largest notebook computer maker, and Flextronics is the biggest maker of electronics for other companies.
■ Electronics
Samsung, Apple end talks
Samsung Electronics Co scrapped talks with Apple Computer Inc to build a factory to manufacture Nand flash memory, used in products such as Apple's line of iPod music players, Yonhap News reported yesterday. Apple turned to a "passive position" for the possible joint investment with Samsung, the report said, citing unidentified Samsung officials. The US company is now negotiating with other chip makers for a possible joint production of Nand flash memory, the report said, without citing where it obtained the information. Samsung, Asia's biggest maker of semiconductors and mobile phones, said on Friday that third-quarter net income fell 30 percent from a year earlier to 1.9 trillion won (US$1.8 billion), in line with earlier estimates.
■ Electronics
Sampo forms alliances
Sampo Corp (聲寶) has formed alliances with United Microelectronics Corp (UMC, 聯電) and Tatung Co (大同), the Commercial Times reported, citing Sampo chairman Eric Chen(陳盛泉). UMC has acquired an 8 percent stake in Rechi Precision Co (瑞智), of which Sampo owns 44 percent, the Taipei-based paper said. UMC supplies semiconductors to Rechi and the two may jointly develop components for washers and refrigerators, the paper said. Sampo and Tatung have agreed to cooperate in outsourcing and procurement of compressors for air conditioners and refrigerators, the paper said. Sampo and Tatung make electronics products and home appliances. UMC is the world's second-biggest maker of made-to-order chips, while Rechi produces compressors for air conditioners and heaters.
■ Investment
Insurance for Singapore
A new plan enabling shareholders to take out insurance to cover possible losses in the value of their portfolios will be launched in January by the Securities Investors Association of Singapore. When a shareholder dies, the beneficiary of his estate could get up to double the market value of the shares at that time, said association president David Gerald on the sidelines of a corporate governance seminar. At the very least, the beneficiary would receive a minimum sum that was equal to the market value of shares to assist with funeral expense, Gerald said. The association is working with an insurance player to finalize such details as the premium amount. The insurance scheme is expected to include a cap on the portfolio value that would be covered. The new policy is part of the association's aim to "attract serious investors and offer them value-added services," Gerald said.
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
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