TAIEX falls on Apple’s outlook
The TAIEX yesterday closed down 0.62 percent, or 48.19 points, to 7,695.99 as Apple Inc’s local component suppliers came under pressure after the US technology giant gave a cautious sales outlook for the current quarter, dealers said.
Turnover amounted to NT$73.19 billion (US$2.52 billion).
“Apple’s results dictated the market movement throughout the session, as many investors feared that weakening sales and profitability will impact Taiwanese suppliers’ bottom lines,” President Securities (統一證券) analyst Vickie Hsieh (謝雯霞) said.
Hon Hai Precision Industry Co (鴻海精密), which assembles iPhones and iPads for Apple, suffered the brunt, with its share price plunging 2.94 percent to NT$82.50.
Formosa bonus hits record low
The Formosa Plastics Group (FPG, 台塑集團) yesterday said it planned to give out 2.83 months of salary as bonuses for its employees. The figure is a record low.
Formosa said last year was a tough period for the group, with net profits falling to their lowest level in 10 years as ethylene prices almost halved from 2011. The group made NT$16.2 billion in net income last year.
The group expects this year to be a slightly better period than last year, bolstered by an improving world economy.
HTC launches Desire U
Smartphone vendor HTC Corp (宏達電) yesterday launched a new smartphone named Desire U, a medium-range model of its popular Butterfly phone.
The mid-end smartphone runs on Google Inc’s Android operating system and is equipped with a 4-inch high-definition touch-screen display.
To promote sales ahead of the Lunar New Year holiday, HTC said Desire U model would sell for NT$7,990. The phone is also available for NT$3,990 with a bundled service package from Chunghwa Telecom Co (中華電信), the nation’s biggest phone company. The package carries a minimum monthly fee of NT$291.
Wi-Fi Alliance opens branch
Wi-Fi Alliance, the global collaboration forum for Wi-Fi wireless technology, yesterday formally opened a branch office in Taiwan to provide certification and engineering support to its member companies throughout Asia.
The staff of the Taipei branch office will assist member companies with technical and certification policy information, and help them prepare products for certification testing at a Wi-Fi Alliance-authorized test laboratory.
“Taiwan has been a critical part of our industry since its inception and remains a key part of the industry’s future,” Wi-Fi Alliance president and CEO Edgar Figueroa said.
Minister upbeat on TIFA talks
Minister of Economic Affairs Shih Yen-hsiang (施顏祥) yesterday said that Taiwan and the US are in close discussions over a resumption of talks under the bilateral Trade and Investment Framework Agreement (TIFA).
Shih told reporters that a formal announcement on the decision to resume TIFA talks would be made once the discussions have been completed.
Legislative Speaker Wang Jin-pyng (王金平) said upon his return from the US at the head of a Taiwanese delegation that attended US President Barack Obama’s inauguration that the “highly expected talks under the bilateral agreement should resume soon.”
NT dollar falls on intervention
The New Taiwan dollar yesterday fell by NT$0.046 to close at NT$29.138 against the US dollar as the central bank intervened to keep the local currency from overshooting, dealers said. Turnover was US$862 million.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
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