NSF owns NT$5.49bn
The state-run National Stabilization Fund (NSF, 國安基金), which in April said it would exit the stock market, owned NT$5.49 billion (US$1780.6 million) in shares as of the end of last month, compared with NT$18.7 billion as of the end of March, the Ministry of Finance said yesterday in a statement. In the April-to-June quarter, the fund had booked gains valued at NT$1.15 billion with unrealized gains of NT$69.42 million, the ministry said. The ministry said the fund is on track to exit the stock market, despite the UK’s vote to leave the EU on June 23.
Foundry capacity to grow 5%
Global foundry capacity is expected to grow 5 percent annually to reach 6 million wafers per month next year, boosted mainly by Taiwan and China, Semiconductor Equipment and Materials International (SEMI) said yesterday. Taiwan will have the largest foundry capacity in the world, accounting for more than 55 percent of 12-inch foundry capacity, thanks to capacity expansion from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (聯電), SEMI said in a news release. China is to grab a 20 percent share of global foundry market next year, given a rapid capacity expansion primarily from Semiconductor Manufacturing International Corp (中芯), SEMI said.
TSMC denies China listing
TSMC yesterday denied reports it was considering going public on China’s stock market. TSMC made the remark after Chinese-language Commercial Times reported the possibility in a front-page story, which cited a Chinese official on Tuesday as saying that Taiwan-based high-tech firms were being encouraged to list on the Chinese market.
Flytech earns NT$1.42bn
Flytech Technology Co (飛捷科技), a leading point-of-sale (POS) system manufacturer, on Monday reported record-high revenue of NT$1.42 billion in the second quarter, thanks in part to contribution of NT$76 million from its newly acquired Box Technologies Ltd last month. Flytech, which also produces medical panel PCs, said the UK subsidiary would help it to expand its presence in the UK and Europe and expects its total revenue in the second half to be higher than the first half’s NT$2.76 billion.
Central bank auctions CDs
The central bank yesterday said it had auctioned NT$30 billion in two-year certificates of deposit (CDs) at an average interest rate of 0.413 percent, marking the lowest level in the bank’s history, as the market remained awash in liquidity. The latest CD sale came after the bank last month cut its benchmark interest rates by 12.5 basis points. Coupled with the bank’s recent sale in 364-day CDs to absorb excess funds from the banking system, the bank has sold NT$2.44 trillion of the notes, which would have the same effect as hiking the required reserve ratio by raising interest rates by nearly 7.5 percentage points.
Chinese exports near record
China’s steel exports climbed to the second-highest level on record last month, as shipments ramp up amid escalating trade tensions. Sales advanced 23 percent from a year earlier to 10.94 million tonnes, China’s General Administration of Customs said. Exports in the first six months were 57.12 million tonnes, the seventh on-year increase in a row and the most ever for the period.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday. In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years. The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said. Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in