■ Semiconductors
Industry to top NT$2 trillion
The production value of Taiwan's semiconductor industry is expected to reach NT$1.75 trillion (US$53.35 billion) in 2008 and to top NT$2 trillion by 2010, according to tallies released yesterday by the Industrial Development Bureau. The production of the semiconductor industry was valued at NT$1.12 trillion last year, up 1.72 percent from 2004, said officials at the bureau. Last year, the nation's contract chip-making industry seized a 69.2 percent share of the world market, while the IC packaging industry garnered 44.8 percent and the IC testing industry gained 60 percent, the officials said. The global market share of Taiwan's IC design industry expanded to 21.5 percent last year, making the country the world's second-largest IC designer, they said.
■ State-owned firms
Six firms post huge deficit
Six state-owned enterprises under the Ministry of Economic Affairs recorded a total deficit of NT$33.2 billion (US$1.01 billion) between January and last month this year, the ministry said on Saturday. Although four of the enterprises made profits in the first eight months, the profits were offset by huge losses recorded by Chinese Petroleum Corp (CPC, 中油) and Taiwan Power Co (Taipower, 台電), due to skyrocketing oil prices, the ministry said. Taipower posted a pre-tax surplus of NT$3.88 billion last month after increasing electricity rates in July, but it still posted a deficit of NT$10.82 billion for the eight months to last month. CPC lost NT$2.98 billion last month and NT$25.37 billion for the first eight months of this year.
■ Piracy
New York passes bootleg law
The US state of New York is further cracking down on bootleg CDs often sold at open-air markets with a new law aimed at protecting artists and recording industry workers. The music piracy law signed into law on Friday by Governor George Pataki makes a Class E felony of selling 100 illegal CDs. That's lowered from the threshold of 1,000, which allowed illicit sellers to maintain adequate inventories without risking a felony charge. The New York City Comptroller's Office estimated the illegal trade cost the city US$1 billion in lost tax revenue.
■ Semiconductors
Freescale agrees to buyout
Freescale Semiconductor Inc agreed to a takeover by private-equity firms led by Blackstone Group LP for US$17.6 billion in the biggest technology buyout ever. The shareholders of the chipmaker will be offered US$40 a share in cash, a 36 percent premium over Austin, Texas-based Freescale's average closing price in the 30 trading days ended Sept. 8, the company said in a statement on Friday. Blackstone, whose US$15.6 billion buyout fund is the world's largest, along with Texas Pacific Group of Fort Worth, Texas, Washington-based Carlyle Group and Permira Advisers LLP in London topped a rival bid by Kohlberg Kravis Roberts & Co and other firms.
■ Automobiles
DaimlerChrysler cuts forecast
DaimlerChrysler AG cut its operating profit forecast for this year on Friday, saying it now expects a1.2 billion euro (US$1.52 billion) third-quarter loss at Chrysler -- more than twice the amount anticipated. Shares in the company fell more than 5 percent. The German-American automaker lowered its operating profit forecast for this year to approximately 5 billion euros, based on an expected full-year loss for the US-based Chrysler Group of1 billion euro.
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
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
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