TAIEX rises on electricity plan
Strong buying in the local bourse yesterday pushed the index above the 7,600 point mark after the government announced a revised plan to hike electricity rates in stages instead of the one-time increase it had previously aimed at implementing, dealers said.
The revised electricity rate plan is expected to reduce the impact on the local economy, with many manufacturers likely to see smaller electricity bills than they had anticipated, which could lower their operating costs, the dealers said.
Improvements in manufacturing activity in the US and China also helped to lift investor confidence in the global economy, with buying focusing on large-cap local stocks, in particular in the electronics sector, to boost the index to close at almost the day’s high, they added.
The TAIEX closed up 175.09 points, or 2.33 percent, at 7,676.81,on turnover of NT$129.67 billion (US$4.46 billion).
Cathay Conning appoints Konyn
Cathay Conning Asset Management Co, a joint venture between Cathay Financial Holding Co (國泰金控) and Conning Holdings Corp of the US, yesterday announced the appointment of a veteran money manager to steer the company in Hong Kong, Cathay Financial said in a statement.
Mark Konyn, who has 22 years of asset management experience, will work as the joint venture’s chief executive, the statement said.
Konyn has worked for Allianz Global Investors, Fidelity Investments, Prudential Investment and other fund managers, the statement said, adding that he has a doctorate in risk analysis.
Powerchip revenues up 7.5%
Local memorychip maker Powerchip Technology Corp (力晶科技) yesterday said revenue rose 7.5 percent to NT$2.27 billion last month from March’s NT$2.11 billion, helped by increase in DRAM chip shipments.
A rise in demand for its contract chips also boosted price and revenue.
Company spokesman Eric Tang (譚仲民) said demand is now exceeding supply ahead of the launch of Intel’s new Ivy Bridge and Microsoft’s Windows 8 system.
Ultrabook price set to fall: Intel
Chip maker Intel Corp said yesterday that thin and lightweight notebook computers under the Ultrabook brand may be priced as low as US$599 in the second half of this year with the adoption of new casing materials.
“It is likely there will be US$599 models in selected regions, but the mainstream price should fall around US$699,” Intel Taiwan country manager Jason Chen (陳立生) said on the sidelines of a press event to discuss Intel’s technologies used in cloud computing data centers.
PC vendors have been using more expensive casing materials on Ultrabooks, but prices for this new category of laptops are expected to go down later this year when manufacturers use new and cheaper materials, such as a mixture of plastics and aluminum, he said.
Chen projected that the new models to be launched in the third and fourth quarters would support new functions, such as touch-enabled screens and gesture sensors, which would help drive overall demand.
NT dollar ends slightly down
The New Taiwan dollar dropped against the US dollar yesterday, down NT$0.008 to close at the day’s low of NT$29.240 after the central bank’s intervention late in the session helped the greenback reverse its early losses, dealers said.
Turnover totaled US$741 million during the trading session.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
RSS