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.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective