MANUFACTURING
String of contractions end
Taiwan’s manufacturing sector last month ended a 15-month contraction, as the Taiwan Institute of Economic Research’s (TIER, 台灣經濟研究院) composite index for the local manufacturing sector showed a “yellow-blue light” for the month after growing 0.77 points from June to 10.59 points. The yellow-blue light was the first uptick after the index saw 15 months of blue lights, thanks to improving performance in trade, the institute said in a report yesterday. However, TIER Economic Forecasting Center director Gordon Sun (孫明德) said it was still too early to say whether the economy has rebounded based on one month’s data.
TEXTILES
Formosa to produce Gore-tex
Formosa Taffeta Co (福懋興業), a textile subsidiary of Formosa Plastics Group (台塑集團), yesterday said it has invested NT$160 million (US$5.043 million) to retrofit a plant to produce Gore-tex fabrics for US-based W.L. Gore & Associates Inc. This is the first time Gore has outsourced production of its Gore-tex fabrics, according to the joint statement. The plant, which is in Yuanlin County’s Douliu Township (斗六), is to begin operations next quarter, Formosa Taffeta said. Formosa Taffeta and Gore made the announcement on Monday after they launched the BumbleBee Project a year ago to build the plant.
TECHNOLOGY
HTC eyes investments
HTC Corp (宏達電) on Tuesday night announced that it would inject US$9 million into its subsidiary H.T.C. (B.V.I) to support it in carrying out strategic investments. In a separate filing with the Taiwan Stock Exchange, HTC Corp said it increased its strategic investment through H.T.C. (B.V.I.) in virtual-reality (VR) start-up Surgical Theater to a total of US$11 million and holds 21.09 percent stake in the start-up. This is the second time in a year that HTC Corp invested in the Cleveland, Ohio-based start-up. The VR start-up develops software that helps surgeons plan operations using VR technologies.
INSURERS
HK sales to China rise
Hong Kong’s insurance sales to Chinese residents more than doubled in the second quarter to a record, even as Chinese regulators took further steps to limit purchases of the products, which can serve as a way to sidestep Beijing’s capital controls. Mainland Chinese purchases of insurance and insurance-related investment policies in the three months ended June climbed to HK$16.9 billion (US$2.2 billion) from HK$7.1 billion a year earlier, according to numbers derived from first-half figures reported yesterday by the Office of the Commissioner of Insurance in Hong Kong. That compared with the previous high of HK$13.2 billion in the first quarter.
OIL
Japan-Saudi tie-up expected
Mitsubishi UFJ Financial Group Inc, Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group Inc this week plan to sign a non-binding agreement in Tokyo with Saudi Arabian Oil Co to expand lending to the state-run firm as it considers an initial public offering (IPO), people with knowledge of the matter said. The Tokyo-based lenders are seeking to get involved in the IPO of the oil firm known as Saudi Aramco, the people said. The Japanese Ministry of Economy, Trade and Industry has asked the oil company to list its shares on the Tokyo Stock Exchange, people with knowledge of the matter said earlier this week.
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
RIDING THE WAVE: The race to build AI infrastructure has lifted the valuations of top memory makers, such as Micron, amid dwindling inventories and supply challenges Micron Technology Inc is to spend ￥1.5 trillion (US$9.6 billion) to build a plant in western Japan to make memory chips for artificial intelligence (AI) applications, the Nikkei reported on Saturday. The move comes as Micron seeks to diversify advanced chip production outside of Taiwan, the Nikkei article said, citing people familiar with the matter. The new factory will manufacture high-bandwidth memory (HBM) chips, a key component for working with AI processors such as those made by Nvidia Corp, the report said. Micron would build the facility within the compound of its Hiroshima plant, starting in May next year, with plans to launch
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