MediaTek Inc (聯發科), the nation’s biggest handset chip designer, yesterday said the latest interest rate increase by the US Federal Reserve might not have a significant impact on the currencies of emerging markets.
While Fed Chairwoman Janet Yellen hinted at further increases next year, MediaTek said the impact on demand in emerging markets would be limited because the rate increases are to be gradual.
The company’s comments came after the Fed raised its benchmark interest rate by 0.25 percentage points on Wednesday in line with economists’ expectation, marking the US central bank’s first rate increase in a year. The rate increase will likely lead to further appreciation of the US dollar against other major currencies.
“The rise in the US dollar will weigh on local currencies in emerging markets, but the recent volatility is still manageable,” MediaTek vice chairman Hsieh Ching-jiang (謝清江) told reporters on the sidelines of a media briefing in Tainan, where the firm was unveiling a dengue fever control and prevention program using its Internet of Things technology.
Hsieh said the company’s customers are feeling growing pressure from foreign-exchange fluctuations, but the impact has not yet spread to MediaTek.
“Any [drastic] movements in currencies affect manufacturers’ costs and consumers’ purchasing power in emerging markets,” Hsieh said.
Meanwhile, the firm said the short supply of 28-nanometer chips could ease in the first half of next year, given increased capacity and lower demand in the slow season.
The handset chip designer said it has been trying to solve a supply constraint over the past three quarters, as demand greatly exceeded its expectations.
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
WAIT-AND-SEE: Last month’s consumer price index came in at 2.8%, which boosts expectations that the Fed would proceed cautiously to lower inflation sustainably The US Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, treading carefully amid uncertainty over US President Donald Trump’s economic policies, which include spending cuts and sweeping tariffs. Since January, Trump has imposed levies on major trading partners Canada, Mexico and China, and on steel and aluminum imports, roiling financial markets and fanning fears that his plans could tip the world’s biggest economy into a recession. The Trump administration has also embarked on unprecedented cost-cutting efforts that target staff and spending, while the US president has promised tax reductions and deregulation down the road. However,
RSS