Chimei Innolux Corp (奇美電子), the world’s No. 3 LCD panel maker, yesterday said that solid demand, primarily from China’s TV market, had helped lift its utilization rate to nearly 100 percent, raising the odds that it would return to profit after one-and-a-half years of losses.
The comments came after recent speculation that an improvement in its bottom line boosted its stock price, which rose near a two-month high at NT$11.45 yesterday.
“Except for some pilot product lines, our [production lines] are fully [utilized],” Chimei chairman and chief executive officer Tuan Hsing-chien (段行建) told reporters on the sidelines of a press conference to introduce the panel maker’s carbon emissions reduction program.
Photo: CNA
“China’s Oct. 1 [holiday shopping season] is one of the factors driving up utilization,” Tuan said.
Company spokesman Lin Chen-hui (林振輝) told reporters that based on talks with customers in China when company officials visited them, demand is showing signs of exceeding supply.
“Business sentiment looks quite good. Order visibility is clear. We think this positive situation will last through November,” Lin said.
The demand for large-sized panels for televisions and smaller ones for handset devices looks resilient, he added.
The company hopes it could swing into its first month of profit this quarter, he said.
Lock Chang (張小彪), an analyst with Taipei-based research team WitsView, agreed.
“Chimei has a good chance to return to profitability this month as prices for most TV panels and monitor panels have rebounded to levels above their costs,” Chang said.
Prices for 42-inch and 46-inch TV panels were unchanged this month at US$218 and US$280 from a month ago, while prices for 32-inch TV panels rose 0.8 percent to US$127, according to WitsView’s survey.
Chimei said it planned to ramp up production of 65-inch TV panels at its sixth-generation fab after its efforts to develop new niche models, such as 39-inch and 50-inch TV panels, paid off.
Plans to raise NT$5.4 billion (US$183 million) by selling 600 million shares to existing shareholders will proceed as planned.
“Our major shareholders have agreed to subscribe to most of the shares,” Lin said.
The company also expects to raise NT$16.25 billion by offering shares in the form of global depositary receipts next quarter, Lin said.
The fund-raising programs should help Chimei meet creditor banks’ requests to inject about NT$20 billion new funds into the company.
Commenting on the New Taiwan dollar’s recent rally against the US dollar, Lin said each NT$1 rise in the local currency’s exchange rate would erode its revenue by 3.3 percent.
However, the NT dollar’s recent rise would not affect its bottom line this quarter, Lin said, as the local currency started its rally against the greenback after the US Federal Reserve announced a new round of quantitative easing measures last Friday.
It would only impact the company’s profits next quarter if the local currency stays strong, the spokesman said.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary