JAPAN
Exports fail to improve
Exports declined the most since 2009, with shipments down for a 10th consecutive month. The continued drop highlights the difficulty of stimulating growth and pulling the economy out of the doldrums. Overseas shipments fell 14 percent last month from a year earlier, the Ministry of Finance said yesterday. The median estimate of economists surveyed by Bloomberg indicated a 13.7 percent decline. Imports dropped 24.7 percent, leaving a trade surplus of ￥513.5 billion (US$5.1 billion). Exports to the US fell 11.8 percent from a year earlier, while those to the EU dropped 6.5 percent and shipments to China, Japan’s largest trading partner, fell 12.7 percent.
Philippines
Economy rapidly expanding
The economy grew 7 percent in the second quarter from the same period last year, the fastest quarterly growth in three years, officials said. Expansion in the services industry, investments and election-year spending boosted growth. The number brought first-half GDP growth to 6.9 percent from a year earlier. Last year, the economy grew 5.9 percent in the second quarter and 5.5 percent in the first six months. Secretary of Socio-economic Planning Ernesto Pernia yesterday said that the growth increases the probability of attaining the full-year target of 6 to 7 percent growth. The economy has grown by an annual average of 6.2 percent in the past six years.
FOOD
URC to buy Snack Brands
Philippine food giant Universal Robina Corp (URC) on Wednesday said it would buy Snack Brands Australia for US$460 million, the latest big deal in a global shopping spree by Philippine firms reflecting the nation’s economic rise. URC said it had sealed an agreement to buy the Australian company — maker of local brands including Kettles, Thins, CC’s and Cheezels — for A$600 million (US$460 million) as part of its ambitions to expand throughout the Asia-Pacific region. URC already has a large presence in Southeast Asian markets and in 2014 it bought 150-year-old New Zealand snack company Griffin’s for NZ$700 million (US$610 million).
FOOD and Beverage
Tax deferral sees Nestle dip
Swiss food and beverage giant Nestle SA said first-half profits dipped due to a one-time tax expense even as revenues edged up behind growth in its key North American food business and despite a slowdown in the Chinese market. The maker of Kit Kats, Lean Cuisine meals, Maggi noodles and Gerber baby foods said net profit came in at 4.10 billion Swiss francs (US$4.28 billion), down from SF4.52 billion a year earlier, due to a SF400 million deferred tax adjustment. Sales rose under 1 percent to SF43.16 billion.
TECHNOLOGY
Cisco announces job cuts
Cisco Systems said it would lay off 5,500 employees as the Internet gear maker scrambles to adapt to technology changes that have reduced demand for its main products. The shake-up announced on Wednesday means about 7 percent of Cisco’s roughly 74,000 workers are to lose their jobs beginning this summer. The company’s fiscal fourth-quarter results, also released on Wednesday, showed revenue increased by just 2 percent from last year to US$12.6 billion. Previous cost cutting helped boost Cisco’s profit 21 percent to US$2.8 billion, or US$0.56 per share.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
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