UNITED STATES
Federal deficit down 50%
The federal government ran up a much smaller budget deficit last month than a year ago, remaining on track to record the smallest annual deficit in eight years. The Treasury Department on Friday said that the deficit totaled US$64.4 billion last month, a drop of 50 percent from the same month a year ago. Much of that improvement reflected quirks in timing related to the calendar. Through the first 11 months of this budget year ending on Sept. 30, the deficit is running 10 percent below last year’s level. The Congressional Budget Office is forecasting that the deficit for the full year will drop to US$426 billion, down 11.8 percent from the previous year as a stronger economy brings in more tax revenue.
INTERNET
Airbnb acquires Vamo
Airbnb Inc, the peer-to-peer accommodation platform, has acquired the trip-planning tool Vamo for an undisclosed amount. Under the deal, Airbnb will take on the staff and technology of Vamo, but will shut down by Oct. 1 the tool that uses Big Data to help travelers find deals for multi-destination trips. California-based Airbnb, which allows property dwellers and owners to rent a room or entire home, has about 40 million users worldwide. Traditional hotel chains see Airbnb as a rival and accuse it of helping people avoid taxes and of hosting illegal hotels on its Web site.
SEMICONDUCTORS
Marvell shares plunge 16%
Marvell Technology Group Ltd shares plunged the sharpest in almost 13 years on Friday, after disclosing an internal investigation of its accounting and reporting weakening demand for personal computer parts. The chipmaker’s shares dropped 16 percent to close at US$8.84 in New York, the biggest single-day decline since October 2002. The stock has tumbled 39 percent this year. The investigation is focusing on whether revenue was recognized earlier than it should have been and whether senior management “set an appropriate tone for an effective control environment,” the company said in a statement.
INTERNET
GoDaddy wins Oscars suit
GoDaddy Inc prevailed in a cybersquatting lawsuit brought by the Academy of Motion Picture Arts and Sciences, which accused the Internet domain registrar of illegally profiting off its trademarks, including for the Oscar telecasts. In a 129-page decision on Thursday, US District Judge Andre Birotte in Los Angeles said the Academy failed to show that GoDaddy acted in bad faith by letting customers purchase 293 domain names such as academyawards.net, oscarsredcarpet.com, billycrystal2012oscars.com and theoscargoestothehangover.com. Birotte ruled after a four-day, non-jury trial early last month.
ALGERIA
New taxes unveiled
The government has unveiled a host of new taxes to boost revenues hit by a plunge in the price of oil, a key export. On Thursday, Minister of Commerce Bekhti Belaib met with the head of the IMF’s mission in the country, Jean Francois Dauphin, to discuss the crisis. The new budget announced by the government on Wednesday raises taxes on diesel, 3G Internet and electricity consumption. It also raises customs duties on imported electronics.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) investment project in Arizona has progressed better than expected, but it still faces challenges such as water and labor shortages, National Development Council (NDC) Minister Yeh Chun-hsien (葉俊顯) said yesterday. Speaking with reporters after visiting TSMC’s Arizona hub and attending the SelectUSA Investment Summit in Maryland last week, Yeh said TSMC’s Arizona site turned a profit of NT$16.14 billion (US$514 million) last year in its first full year of mass production. “TSMC told me it was surprised by the smooth trial run of the first fab, which has left the company optimistic about the project’s outlook,”
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