SOLAR PANELS
Suntech in bankruptcy court
Suntech Power Holdings Ltd (尚德電力), one of the world’s biggest solar panel manufacturers, was forced into bankruptcy court on Wednesday, becoming the latest casualty of a painful slump in the global solar industry. Suntech Power said eight Chinese banks asked a court to declare it insolvent after the company missed a US$541 million payment to bondholders last week. Suntech said it would not oppose the petition. “While we evaluate restructuring initiatives and strategic alternatives, we are committed to continuing to provide high-quality solar products to our global customer base,” Suntech chief executive officer David King (金緯) said in a statement.
CHINA
Manufacturing picks up
The nation’s manufacturing rebounded modestly this month after dipping during the country’s biggest public holiday the month before, a survey showed yesterday, in a sign of gradual recovery in the world’s second-biggest economy. HSBC’s preliminary version of its purchasing managers’ index for this month rose to 51.7 on a 100-point scale. A reading above 50 indicates expansion. The reading “implies that the Chinese economy is still on track for gradual growth recovery,” HSBC’s chief China economist Qu Hongbin (屈宏斌) said in a statement.
MINING
Rare earths found on seabed
Japanese researchers said yesterday they have found a rich deposit of rare earths on the Pacific seabed, with reports suggesting it could be up to 30 times more concentrated than Chinese reserves. Mud samples taken from 5,800m below the waves contained highly concentrated amounts of the precious minerals, which are vital for high-tech manufacturing and used in products including wind turbines and iPods. Scientists believe the seabed contains about 6.8 million tonnes of the materials, the equivalent of 220 to 230 years worth of rare earths used in Japan.
TECHNOLOGY
Oracle reports flat Q3
Oracle Corp on Wednesday reported flat earnings for its fiscal third quarter, hurt by a drop in sales of hardware systems and new software. Shares tumbled in after-hours trading on the weaker-than-expected results. Revenue from new software licenses and online subscriptions fell 2 percent year-on-year to US$2.3 billion. The company had predicted that number would rise by 3 percent to 13 percent. Sales of hardware systems products dropped 23 percent.
SHIPPING
FedEx cuts profit forecast
Global package delivery giant FedEx on Wednesday reported lower quarterly earnings and slashed its profit guidance for this fiscal year, citing weakness in the international freight market. FedEx reported net income of US$361 million for the third quarter that ended February 28, down 31 percent from a year earlier. Revenue rose 4 percent to US$11 billion, about US$100 million below the firm’s forecast.
AIRLINES
Lufthansa hit by strikes
German airline Lufthansa said yesterday it has canceled more than 670 European flights owing to warning strikes by ground staff and other divisions within the group. Already on Wednesday, Lufthansa had said it would cancel most of its domestic and short-haul flights between 5am and midday local time at the airports of Frankfurt, Munich, Dusseldorf, Berlin, Hamburg and Cologne as well as several other locations.
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
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
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
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