TRADE
Japan’s deficit decreases
Japan’s trade deficit narrowed 2.4 percent year-on-year to US$8.7 billion last month largely due to shrinking energy bills that had soared in the wake of the Fukushima crisis, official data showed yesterday. The country’s deficit stood at ￥948.5 billion (US$8.71 billion) against the year-before shortfall of ￥971.4 billion, the finance ministry said. The data, although better than the market median forecast of a ￥1.028 trillion deficit, extended the run of shortfalls to a 26th straight month. Exports slipped 1.3 percent to ￥5.71 trillion, affected by lower shipments of chemical products and cars, while imports were down 1.5 percent to ￥6.65 trillion as imports of crude oil and coal fell.
ECONOMY
Sweden’s GDP grows 0.7%
Sweden’s economy expanded more than originally estimated in the second quarter as consumer spending grew, the statistics agency said yesterday. GDP grew a quarterly 0.7 percent, revised from a 0.2 percent estimate in July, Statistics Sweden said. The economy grew an annual 2.6 percent, compared with an estimate for 1.9 percent in July. Sweden’s central bank earlier this month kept its main interest rate at 0.25 percent to fight off the threat of deflation.
INDONESIA
Optimism over GDP targets
Indonesian Finance Minister Chatib Basri said yesterday he was “optimistic” the country could achieve 7 percent growth by 2017, but warned that incoming president Joko Widodo faces a major challenge in pushing much-needed infrastructure development. Southeast Asia’s biggest economy expanded just 5.12 percent in the second quarter to June, its slowest rate in five years, highlighting the problems facing the reform-minded Widodo when he takes office next month. Widodo has pledged to raise GDP growth to 7 percent a year within two years by attracting foreign investment, especially to the manufacturing sector and cutting red tape, but many economists consider the target ambitious.
TRADE
S Korea to scrap rice caps
After announcing it would scrap rice import caps from next year, the South Korean government yesterday proposed an initial 513 percent tariff to soften the impact on a crucial domestic market. The rate will have to be verified and confirmed by the WTO — a process that could take months. The government also plans to spend a record 376 trillion won (US$363 billion) next year and delay reaching a surplus by at least two years as the government increases support for a slowing economy. The increase — the biggest since the 2009 budget — aims to cushion the country from the global financial crisis.
SMARTPHONES
iPhone 6 casings stolen
Chinese authorities have arrested a suspect in a case involving the leak of information about Apple Inc’s iPhone 6, which is assembled by Taiwan’s Hon Hai Group (鴻海集團), according to Chinese media. Hon Hai, which operates in China as Foxconn Technology Group (富士康科技集團), said it will conduct an internal investigation and will cooperate fully with police in the investigation. The suspect, a 40-year-old man surnamed Qiao (喬), was working at a Foxconn factory in Jincheng City in Shanxi Province and allegedly stole six iPhone 6 casings and sold them in a Shenzhen market in the southern province of Guangdong in June and July. He was arrested by law enforcement authorities on Sept. 4, the report said.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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