CHINA
FDI falls, but exports rise
Foreign direct investment (FDI) in China fell again last month and government spokesman Shen Danyang (沈丹陽) said yesterday it was too early to forecast a recovery in trade despite a 9.9 percent rise in exports last month. The decline in FDI added to mixed signals about the health of China’s economy following Thursday’s report that growth slowed to 7.4 percent in the third quarter. Retail sales and factory output improved, prompting suggestions a recovery might be taking shape. FDI fell 6.8 percent from a year earlier to US$8.4 billion, the Ministry of Commerce reported. FDI includes investment in factories and other assets, but excludes shares and other financial assets.
TECHNOLOGY
Court upholds tablet verdict
Britain’s Court of Appeal has backed a judgement that Samsung Electronics Corp’s Galaxy tablet computer is “not as cool” as Apple’s iPad — and therefore does not infringe Apple Inc’s rights. The panel’s upholding of the findings of a lower court endorses the judgement, which made headlines around the world when it was handed down in July. Judge Colin Birss had then gushed over Apple’s design, while knocking back the company’s case against its rival. On Thursday, the Court of Appeal agreed unanimously with Birss, with Judge Robin Jacob ordering Apple to publicize the court rulings to make sure consumers knew that Samsung had not copied its design.
TECHNOLOGY
NEC to return to profit
Japanese information technology firm NEC Corp said yesterday it has revised its half-year forecast from a loss to a healthy net profit, with reports saying demand for Apple Inc’s iPhones was helping the company. For the first six months to last month, NEC now predicts a net profit of ¥8 billion (US$100 million), compared with its earlier forecast of a net loss of ¥24 billion. It expects an operating profit of ¥47 billion on sales of ¥1.45 trillion, against its previous forecast of a ¥1 billion profit on sales of ¥1.4 trillion.
AUTOPARTS
A123 wins approval for loan
A123 Systems Inc, the US electric-car battery maker that filed for bankruptcy earlier this week, won court approval to borrow as much as US$15.5 million from Johnson Controls Inc while it prepares to sell its assets. A123 is scheduled to return to court on Oct. 30 to seek approval of the remainder of the US$72.5 million loan. Wanxiang Group Corp (萬向集團), China’s largest autoparts maker, plans to bid for assets of bankrupt A123, a lawyer for the Chinese company said. Wanxiang had planned to invest as much as US$465 million in A123, giving the Hangzhou-based company a stake of as much as 80 percent, A123 said in an Aug. 16 statement.
TECHNOLOGY
Google, Samsung unveil PC
Google Inc and Samsung Electronics Corp are introducing a lightweight laptop computer with a price similar to smaller tablet computers. The computer unveiled on Thursday sells for US$249 and runs on an operating system revolving around Google’s Chrome Web browser. Like other so-called Chromebooks, the laptop does not have a hard drive. The low-priced laptop represents Google’s latest challenge to the Windows operating system used in most PCs. It goes on sale early next week, just days before Microsoft Corp releases Windows 8. Most of the PCs running on Windows 8 are expected to sell for between US$500 and US$1,000.
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