Shares of Hon Hai Precision Industry Co (鴻海精密), an assembler of iPhones and iPads for Apple Inc, hit NT$100 for the first time in more than two years after Apple shares hit a record high overnight, dealers said.
Buying in Hon Hai, the world’s largest contract electronics maker, also reflected optimism over the manufacturing giant’s future after the company confirmed it is in talks with US authorities to invest in the US, the dealers said.
Hon Hai shares closed up 1.21 percent at NT$100.00, off a high of NT$100.50, with 59.04 million shares changing hands. The stock ended at the NT$100 level for the first time since Sept. 25, 2014, when its shares also closed at NT$100.00.
Hon Hai and other large-cap high-tech stocks, in particular contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), attracted buying yesterday, pushing up the broader market’s weighted index to breach 9,900 points.
Soon after the market opened, investors bought Hon Hai shares after Apple shares hit an all-time high on the NASDAQ, rising more than 2 percent to close at US$146.58 ahead of the release of its earnings report for the January-to-March period.
The market widely expects Apple to report that its sales rose 5 to 6 percent from a quarter earlier, even though iPhone sales have slowed.
More importantly, the market is upbeat about sales of the next-generation of iPhones on the 10th anniversary of the device, which could boost Hon Hai’s shipments in the second half of this year, in particular in the fourth quarter, dealers said.
Apple accounts for about 40 percent of Hon Hai’s total revenue.
In addition, investors rushed to pick up Hon Hai, known primarily as Foxconn Technology Group (富士康) outside Taiwan, after the company’s chairman, Terry Gou (郭台銘), last month visited the White House twice to discuss possible investments in the US.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
Hon Hai Precision Industry Co (鴻海精密) is reportedly making another pass at Nissan Motor Co, as the Japanese automaker's tie-up with Honda Motor Co falls apart. Nissan shares rose as much as 6 percent after Taiwan’s Central News Agency reported that Hon Hai chairman Young Liu (劉揚偉) instructed former Nissan executive Jun Seki to connect with French carmaker Renault SA, which holds about 36 percent of Nissan’s stock. Hon Hai, the Taiwanese iPhone-maker also known as Foxconn Technology Group (富士康科技集團), was exploring an investment or buyout of Nissan last year, but backed off in December after the Japanese carmaker penned a deal
SUPPORT: The government said it would help firms deal with supply disruptions, after Trump signed orders imposing tariffs of 25 percent on imports from Canada and Mexico The government pledged to help companies with operations in Mexico, such as iPhone assembler Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), shift production lines and investment if needed to deal with higher US tariffs. The Ministry of Economic Affairs yesterday announced measures to help local firms cope with the US tariff increases on Canada, Mexico, China and other potential areas. The ministry said that it would establish an investment and trade service center in the US to help Taiwanese firms assess the investment environment in different US states, plan supply chain relocation strategies and
WASHINGTON POLICY: Tariffs of 10 percent or more and other new costs are tipped to hit shipments of small parcels, cutting export growth by 1.3 percentage points The decision by US President Donald Trump to ban Chinese companies from using a US tariff loophole would hit tens of billions of dollars of trade and reduce China’s economic growth this year, according to new estimates by economists at Nomura Holdings Inc. According to Nomura’s estimates, last year companies such as Shein (希音) and PDD Holdings Inc’s (拼多多控股) Temu shipped US$46 billion of small parcels to the US to take advantage of the rule that allows items with a declared value under US$800 to enter the US tariff-free. Tariffs of 10 percent or more and other new costs would slash such