ELECTRONICS
G-Flex to debut in Europe
South Korea’s LG Electronics Inc said yesterday it would start selling its first curved-screen smartphone — seen as a first step to fully flexible products — in Europe next month. The “G-Flex” was introduced in Seoul in October last year and will hit the stores in 20 European nations, including France, Germany, Sweden and the UK, the firm said in a statement. The G-Flex is curved on the vertical axis of the handset, which LG says offers a more immersive viewing experience and fits the contour of the face. LG said the new phone — already available in Asia — would also be introduced in the US by the end of March. LG, the world’s fourth-largest smartphone maker, did not provide any pricing details. Curved screens are still at a nascent stage in display technology, which is shifting toward flexible panels that are bendable, or can even be rolled or folded.
AUTOMAKERS
Peugeot to raise funds
PSA Peugeot Citroen, Europe’s second-largest automaker, is planning a two-step capital increase of 3 billion euros (US$4.1 billion) to shore up its financing as the unprofitable French manufacturer consumes cash. Dongfeng Motor Corp in the first phase may contribute funds through a sale reserved for Peugeot’s Chinese partner and then participate in a broader rights offering after that, the Paris-based automaker said. The French state may also buy shares in both sales, Peugeot said. The 118-year-old manufacturer is seeking a cash injection after burning through 4 billion euros in the past two years as demand in its European home region sank. The new funding is equal to 81 percent of Peugeot’s value and follows a share sale in March 2012 to raise 1 billion euros in which General Motors Co bought a 7 percent stake that it later sold.
CONSUMER GOODS
Unilever beats expectations
Unilever, the maker of Magnum ice cream and TRESemme shampoo, reported fourth-quarter sales growth that beat estimates, led by a rebound in emerging markets. Revenue excluding acquisitions and currency fluctuations rose 4.1 percent in the three months through last month, the London-and Rotterdam-based company said yesterday in a statement. The median estimate of 14 analysts surveyed by Bloomberg was for growth of 3.9 percent. The quantity of goods sold gained 2.7 percent, more than the 2.5 percent forecast by analysts. The quarter benefited from an improved performance in emerging markets, where growth had been slipping. Sales in those regions rose 8.4 percent, better than the third quarter’s 5.9 percent gain. Unilever generates 57 percent of its revenue from countries such as India and China, and said on Sept. 30 last year that slowing growth would weigh on sales.
ENERGY
Shell sells gas project stake
Royal Dutch Shell said on Monday it had agreed to sell stakes in a gas project in Western Australia for US$1.14 billion as part of the oil company’s drive to improve its return on investment. Shell said it is selling an 8 percent stake in the Wheatstone and nearby Iago gas fields, as well as a 6.4 percent stake in the related Wheatstone liquefied natural gas (LNG) project to Kuwait Foreign Petroleum Exploration Co (KUFPEC). The move raises KUFPEC’s holding in the LNG project, in which the state company is already a partner, to 13.4 percent. “We are refocusing our investment to where we can add the most value with Shell’s capital and technology,” Shell chief executive Ben van Beurden said.
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
MARKET FACTORS: Navitas Semiconductor Inc said that Powerchip is to take over from TSMC as its supplier of high-voltage gallium nitride chips Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday in a statement said that it would phase out its compound semiconductor gallium nitride (GaN) business over the next two years, citing market dynamics. The decision would not affect its financial targets announced previously, the world’s biggest contract chipmaker said. “We are working closely with our customers to ensure a smooth transition and remain committed to meeting their needs during this period,” it said. “Our focus continues to be on delivering sustained value to our partners and the market.” TSMC’s latest move came unexpectedly, as the chipmaker had said in its annual report that it has
Rick Cassidy, the chairman of Taiwan Semiconductor Manufacturing Co's (TSMC, 台積電) US subsidiary, TSMC Arizona Corp, plans to retire, but the company has yet to name a successor. After Cassidy made his intention to retire known, TSMC Arizona held a special general meeting and approved a resolution that Cassidy would not continue as chairman and would not remain as a director, TSMC said in a statement filed with the Taiwan Stock Exchange last night. The meeting also approved a plan to appoint TSMC Arizona president Rose Castanares as a director, the company said, adding that Cassidy has been named as an advisor
SECURITY WARNING: The company possesses key 3-nanometer technology, and Taiwan should prevent it from being transferred to China, a lawmaker said The Ministry of Economic Affairs yesterday said it would conduct a “strict review” of any proposed acquisition of Taiwanese tech company Source Photonics Co (索爾思光電), following media reports that a Chinese firm was planning to buy the company in the Hsinchu Science Park (新竹科學園區). Local media reported that Suzhou Dongshan Precision Manufacturing Co (東山精密), China’s largest printed circuit board manufacturer, had announced plans to acquire Source Photonics for 5.9 billion yuan (US$823.1 million). The ministry said it has not received an application from Source Photonics and has formally notified the company that any buyout would constitute a change in its ownership structure. The
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