TECHNOLOGY
Hon Hai moves into cars
Hon Hai Technology Group (鴻海科技集團), the operator of Hon Hai Precision Industry Co (鴻海精密) — which makes iPhones and iPads for Apple Inc — yesterday said it has signed an agreement with Chinese Internet company Tencent Holdings Ltd (騰訊) and China Harmony Auto Holding (中國和諧汽車) to team up on producing electric cars in China and developing Internet of Things (IoT) devices. Under the terms of the agreement, the companies would form a team to design and manufacture electric cars in China’s Henan Province. In December last year, Hon Hai gained a 12 percent share of China Harmony Auto for HK$608 million (US$78.4 million). China Harmony focuses mainly on high-end luxury and super-luxury brands and aims to become China’s first luxury-only auto dealer. It has 46 outlets and after-sales service centers across China, including in Beijing, Guangzhou, Shanghai, Xiamen, Wuhan and Xian.
CHIPMAKERS
ADATA posts NT$112m loss
DRAM module maker ADATA Technology Co (威剛) yesterday posted a quarterly net loss of NT$112 million (US$3.56 million) for the final quarter of last year after booking massive inventory losses. That brought the company’s total net profit last year to NT$808 million, or NT$3.52 per share. The figure represents a 59.4 percent decline from the net profit of NT$1.99 billion, or NT$9.08 per share, ADATA recorded in 2013. The company’s board yesterday approved a plan to distribute a cash dividend of NT$2.5 per share based on last year’s net profit — a 71 percent payout ratio. The company is scheduled to discuss cash dividend distribution during an annual shareholders’ meeting on June 9.
SOLAR PANELS
E-Ton improves loss
Solar cell maker E-Ton Solar Co (益通光能) yesterday posted a narrowed loss of NT$811 million for last year on the back of recovering demand. That marked the sixth consecutive year of losses for the Tainan-based company. In 2013, E-Ton lost NT$1.58 billion. Revenue surged 36 percent to NT$4.452 billion last year, compared with NT$3.268 billion a year ago.
BANKING
E.Sun’s foreign plans passed
E. Sun Commercial Bank (玉山銀行) has obtained the green light to set up new operations in China and Vietnam. The parent company of the bank, E.Sun Financial Holding Co (玉山金控), announced in a statement released on Friday that the China Banking Regulatory Commission has approved its plan to set up a subsidiary and a new branch in Shenzhen, Guangdong Province. According to the bank, its Chinese subsidiary is to be established in Shenzhen’s Qianhai area and will have 2 billion yuan (US$321.92 million) available in capital, while its new branch is to be opened in Futian District in the next six months. E.Sun said the new operations in Shenzhen would allow it to better tap into opportunities created by China’s Silk Road economic belt and maritime Silk Road initiatives, in which the southern city is strategically located. The bank currently operates a branch and a sub-branch in Dongguan, and also in Guangdong, according to its Web site. The bank announced on Sunday that the Vietnamese central bank has approved its plan to set up a branch in Dong Nai Province, which is expected to open by the end of this year. The bank said Southeast Asia, especially Vietnam, where many Taiwanese businesses have operations, is a key market.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in