INFRASTRUCTURE
China to invest US$158bn
An estimated 55 infrastructure projects announced by China this week could require investment of more than 1 trillion yuan (US$158 billion), state media said yesterday. The China Securities Journal said the figure was a “conservative estimate” for spending on projects announced on Wednesday and Thursday by the top economic planner, the National Development and Reform Commission. On Wednesday, the commission announced it had approved 25 new urban railway projects, including subways and light railways in 18 cities across China, at more than 800 billion yuan. The commission on Thursday also unveiled another 30 infrastructure works — including 13 highway projects, 10 waste treatment projects and seven port or waterway projects — but gave no value.
TRADE
France’s deficit shrinks
France’s trade deficit narrowed to 4.27 billion euros (US$5.4 billion) in July from 6.07 billion euros in June, the customs office said in an e-mailed statement. Exports rose 0.8 percent from the previous month to 36.58 billion euros, while imports fell 3.5 percent to 40.85 billion euros. For the first seven months of the year, the deficit narrowed 10.5 percent from a year ago to 40 billion euros.
TRADE
German exports up in July
The Federal Statistical Office said German exports inched up unexpectedly in July despite weakening demand within the eurozone, where several countries are in recession. Exports rose 0.5 percent in July from the previous month to 92.9 billion euros, while imports rose 0.9 percent to 76.8 billion euros over June, figures adjusted for seasonal and calendar variations showed yesterday. Economists had been predicting both to drop slightly. From January to July, total exports were up 5.4 percent over the same period last year to 644.1 billion euros. While exports to countries using the euro dipped 0.6 percent, exports to the EU overall rose 1.2 percent.
INFLATION
Britons expect smaller rise
Britons’ expectations for inflation fell last month as officials struggled to pull the economy out of a double-dip recession. Consumers anticipated prices would increase 3.2 percent in the coming 12 months, down from a prediction of a 3.7 percent gain in May, the Bank of England said in a quarterly survey published in London yesterday. A measure of net satisfaction with the way the bank is doing its job fell to the lowest on record. Inflation accelerated to 2.6 percent in July from 2.4 percent in June, delaying the return to target of 2 percent forecast by policymakers. The poll of 1,929 people aged 16 or over was conducted by GfK NOP Ltd from Aug. 9 to Aug. 14.
TIMBER
Russia, China invest in RFP
China and Russia’s sovereign wealth funds’ joint US$2 billion investment pool will invest about US$200 million in a timber processing company in Russia. The investment in RFP Group, Russia’s second-largest forestry products company, was announced yesterday by Russian Direct Investment Fund (RDIF) chief executive Kirill Dmitriev yesterday at the APEC summit in Vladivostok, Russia. RDIF and China Investment Corp (中國投資公司) contributed US$1 billion each to the joint fund, which plans to put 70 percent of its money in Russia and 30 percent in China.
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and the University of Tokyo (UTokyo) yesterday announced the launch of the TSMC-UTokyo Lab to promote advanced semiconductor research, education and talent development. The lab is TSMC’s first laboratory collaboration with a university outside Taiwan, the company said in a statement. The lab would leverage “the extensive knowledge, experience, and creativity” of both institutions, the company said. It is located in the Asano Section of UTokyo’s Hongo, Tokyo, campus and would be managed by UTokyo faculty, guided by directors from UTokyo and TSMC, the company said. TSMC began working with UTokyo in 2019, resulting in 21 research projects,
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) yesterday expressed a downbeat view about the prospects of humanoid robots, given high manufacturing costs and a lack of target customers. Despite rising demand and high expectations for humanoid robots, high research-and-development costs and uncertain profitability remain major concerns, Lam told reporters following the company’s annual shareholders’ meeting in Taoyuan. “Since it seems a bit unworthy to use such high-cost robots to do household chores, I believe robots designed for specific purposes would be more valuable and present a better business opportunity,” Lam said Instead of investing in humanoid robots, Quanta has opted to invest
EXPANSION: While Gigabyte Technology is optimistic about market demand this year, uncertainty remains due to the impact of potential US tariffs and currency fluctuations Motherboard and graphics card maker Gigabyte Technology Co (技嘉) yesterday said that it plans to launch an artificial intelligence (AI) server assembly line in the US in the second half of this year. The company’s core motherboard and graphics card businesses in the US remain stable, but sales of its higher-priced AI servers still hinge on the development of tariff policies, Gigabyte chairman Dandy Yeh (葉培城) told reporters following the company’s annual shareholders’ meeting in Taipei. Yeh was referring to the “reciprocal” tariffs announced by US President Donald Trump on April 2, which were later postponed for 90 days. While Gigabyte
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