The Financial Supervisory Commission yesterday announced it would extend the government’s receivership of Kuo Hua Life Insurance Co (國華人壽) for another nine months, beginning on Feb. 4.
The move marked the second time the receivership has been extended, as the previous one is due to expire early next month and there remains no immediate solution to the personnel impasse that is hindering Taiwan Financial Holdings Co’s (台灣金控) plan to acquire the insolvent life insurer.
The financial regulator took control of the insolvent life insurer on Aug. 4, 2009, and appointed the semi-official Insurance Stabilization Fund (ISF, 保險安定基金) its official receiver.
The fund will be the receiver until Nov. 3 under the latest extension, the commission said. Kuo Hua was the first local life insurer to be brought under government receivership in 40 years.
Taiwan Financial chairwoman Susan Chang (張秀蓮) said on Monday her firm’s acquisition bid hit a snag regarding whether Kuo Hua employees should enjoy benefits and compensation equal to that of Taiwan Financial staffers, who earn their qualifications after passing civil service exams.
The state-owned financial group needs its largest shareholder, the Ministry of Finance, to approve all personnel hirings, share releases, procurements and other matters.
Meanwhile, the commission held a third meeting yesterday with chairpersons of six financial holding firms in a continued bid to better understand the industry and the companies’ views on cross-strait banking deregulation.
The commission is slated to embark on another round of talks with Chinese financial regulators about further liberalization of cross-strait financial markets, in line with the Economic Cooperation Framework Agreement (ECFA) signed in June last year.
“We respect suggestions of the industry and will host more discussions later to better help them expand business,” the commission said in a statement.
Domestic lenders have called for looser lending restrictions for their branches in China, as well as lower thresholds for conducting Chinese yuan business.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective