MANUFACTURING
Hon Hai revenue rises
Hon Hai Precision Industry Co (鴻海精密), one of Apple Inc’s iPhone assemblers, yesterday posted revenue of NT$322.78 billion (US$10.66 billion) for last month, up 0.12 percent year-on-year from NT$322.38 billion in April last year. On a monthly basis, it represented a 5.53 percent decline from NT$341.69 billion in March, Hon Hai’s filing with the Taiwan Stock Exchange said. Hon Hai attributed the monthly decline to the softness of its computing products, while the performance of its devices stayed flat from a month earlier. Sales of its consumer products only dropped slightly last month from a month earlier, it said.
MANUFACTURING
Pegatron reports record sales
Pegatron Corp (和碩), an Apple Inc iPhone assembler, yesterday reported sales of NT$82 billion for last month, its strongest performance over the same period in its history, the firm said in a stock exchange filing. The monthly result represented a surge of 26.01 percent annually and 10.37 percent from a month earlier, the company’s filing said.
BANKING
Vision Fund close to US$95bn
SoftBank Group Corp is expected to announce commitments of as much as US$95 billion for its Vision Fund, people familiar with the matter said. The fundraising drive is expected to be announced next week, the people said, asking not to be identified as the information is private. A representative of Tokyo-based SoftBank declined to comment. Chief executive officer Masayoshi Son’s investment pool has attracted interest from Saudi Arabia’s sovereign wealth fund, which said it would consider offering as much as US$45 billion, as well as technology giants such as Apple and Qualcomm Inc, which have also said they would participate. Abu Dhabi’s Mubadala Development Co is also considering committing as much as US$15 billion, people familiar with the matter said. SoftBank plans to contribute at least US$25 billion of its own capital in the next five years. The Japanese company announced plans for the technology fund last year, aiming to create a one of the biggest technology investors over the next decade.
CURRENCY
US dollar rises against NT
The US dollar yesterday rose against the New Taiwan dollar, gaining NT$0.008 to close at NT$30.266. Turnover totaled US$744 million during the trading session. The greenback opened at NT$30.220 and moved between NT$30.216 and NT$30.290 before the close. Despite the recent pullback, local currency has risen about 7 percent against the greenback since the beginning of this year, which has led to concern that exporters could see their sales and earnings fall, and that calls could be made for the central bank to intervene in the foreign exchange market. “The central bank should move to prevent international speculative capital inflows and outflows from affecting the FOREX market,” said Hiwin Technologies Co, the nation’s largest manufacturer of linear-motion devices. Noting that 80 percent of the company’s sales rely on exports, the toolmaker said a fast appreciation of the currency could significantly affect its turnover and margins. While businesses should upgrade to increase their added value and reduce the effects of fluctuations in foreign exchange rates, the central bank should maintain a stable exchange rate because a rise or fall in domestic currency is closely related to national competitiveness, Hiwin said.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS