NPL ratio down to record low
The domestic banking sector’s non-performing loan (NPL) ratio declined to a historical low of 0.96 percent last month, down by 0.06 percentage points month-on-month, the Financial Supervisory Commission data’s showed yesterday.
Bad loans by the nation’s 37 banks totaled NT$183.8 billion (US$5.7 billion) at the end of last month — a decrease of NT$6.7 billion from a month earlier.
The sector granted nearly NT$20 trillion in loans last month, up NT$387.9 billion month-on-month, NT$240 billion of which went to individual lenders, the data showed.
Thirty-six of the 37 banks had an NPL ratio of less than 2.5 percent, excluding Cosmos Bank Taiwan (萬泰銀行).
TSMC not operating SMIC
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reiterated that it would not be involved in the operation of Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC, 中芯) after the government gave the go-ahead to obtain an 8 percent stake of SMIC for free.
TSMC chairman Morris Chang (張忠謀) yesterday told reporters that the world’s biggest contract chipmaker would not rule out the possibility of selling the SMIC shares in the future.
Chang made the comments after the Ministry of Economic Affairs approved the deal on Monday.
The Shanghai-based SMIC offered the shares to settle a lawsuit with TSMC last year.
TISC outlook rating downgraded
Fitch Ratings yesterday revised downward its outlook rating on Taiwan International Securities Corp (TISC, 金鼎證券) to “evolving” from “stable,” the rating agency said in a press statement.
The outlook revision reflects the company’s ownership disputes, as well as the likely prolonged legal process in resolving these disputes, it added. Despite China Development Financial Holding Corp’s (開發金) dominant ownership in TISC, it does not have management control due to resistance from TISC’s original founding shareholders, the Chang family, Fitch Rating said, noting that China Development is substantially stronger than TISC in terms of financial strength and size.
China Airlines expects profit
China Airlines Ltd (華航), the nation’s biggest carrier, expects to report a profit this year as the global economic recovery boosts demand for cargo shipments, Roger Han (韓梁中), company senior vice president of finance, said by telephone yesterday. The carrier is upbeat about its performance in the second half, he said.
Separately, Advanced Semiconductor Engineering Inc (日月光) said the board of its subsidiary ASE Test Inc (台灣福雷電子) approved plans to invest US$100 million to set up a company in China through an offshore company, according to a stock exchange filing.
NT dollar plunges
The New Taiwan dollar dropped the most in three weeks as overseas investors pulled funds from local shares for a fifth day and the central bank was suspected of selling the currency in late trading.
The currency fell as the monetary authority intervened to counter gains that may erode the competitiveness of local exporters, according to a trader familiar with the central bank’s operations who declined to be identified.
“The central bank doesn’t want the NT dollar to appreciate too much,” said Henry Lin, a foreign-exchange trader at Taiwan Shin Kong Commercial Bank (新光銀行). “Most of the money is parked in government bonds to arbitrage the price of the NT dollar.”
The NT dollar weakened 0.3 percent to close at NT$32.279 against its US counterpart, the biggest decline since June 7 on turnover of US$872 million.
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
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
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