ELECTRONICS
Lite-On posts higher revenue
Lite-On Technology Corp (光寶科技) yesterday reported consolidated revenue of NT$19.53 billion (US$638.55 million) for last month, rising 2 percent year-on-year and 17 percent month-on-month. The result was Lite-On’s best performance in the past six months, company data showed. The company attributed the result to stable demand for LED products and components. Its cloud-computing business also lent support to the result, Lite-On said. The company’s accumulative consolidated revenue in the first six months was NT$104.4 billion, 1 percent higher than the same period last year.
CHIPMAKERS
TSMC meets its forecast
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a 15.6 percent month-on-month increase in revenue for last month, helping the world’s largest contract chipmaker meet its second-quarter forecast. Revenue last month rose to NT$84.19 billion from NT$72.8 billion in May. Last quarter, revenue totaled NT$213.86 billion, hitting the low end of the company’s forecast of between NT$213 billion and NT$216 billion. The figure represented a quarterly decline of 8.57 percent from NT$233.91 billion in the first quarter. Local rival United Microelectronics Corp (聯電) yesterday said its revenue rose 4.2 percent last month to NT$13.1 billion from May’s NT$12.51 billion. Last quarter, revenue increased 0.32 percent quarter-on-quarter to NT$37.54 billion from NT$37.42 billion. That beat the company’s expectation of a flattish second quarter.
CHIPMAKERS
Price rises boost Nanya
Nanya Technology Corp (南亞科技), the nation’s biggest DRAM chipmaker, yesterday said its revenue rose 1.9 percent last month to NT$4.19 billion, compared with NT$4.12 billion in May. That represented 36.98 percent year-on-year growth, according to a company statement. In the second quarter, revenue rose 3.22 percent quarter-on-quarter to NT$12.63 billion due to price increases, it said. Nanya Technology said in May that a chip shortage would worsen this quarter as supply cannot catch up with rising seasonal demand for smartphones and consumer electronics. The company expects prices to rise 10 percent as demand is expected to increase 1 percent faster than supply. The chipmaker plans to release detailed financial results and to give its business outlook during an investors’ conference on Monday next week.
FINANCIAL SERVICES
Hua Nan earns NT$1.65bn
State-run Hua Nan Financial Holding Co (華南金控) earned NT$1.65 billion in net income last month, led by its banking arm Hua Nan Commercial Bank (華南銀行), the bank-focused conglomerate said in a statement. The lender generated NT$1.6 billion in net profit last month, accounting for 97.02 percent of overall income, although other subsidiaries also made contributions amid an improving economy at home and abroad, the company said.
HOSPITALITY
FDC posts higher revenue
Hotel and restaurant operator FDC International Hotels Corp (雲品國際) yesterday posted revenue of NT$108 million for last month, an improvement of 8.52 percent from the same period last year on the back of better food and beverage sales. The hotelier in May acquired two eateries in New Taipei City and Taoyuan, allowing it to increase banquet sales, it said in a statement.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) investment project in Arizona has progressed better than expected, but it still faces challenges such as water and labor shortages, National Development Council (NDC) Minister Yeh Chun-hsien (葉俊顯) said yesterday. Speaking with reporters after visiting TSMC’s Arizona hub and attending the SelectUSA Investment Summit in Maryland last week, Yeh said TSMC’s Arizona site turned a profit of NT$16.14 billion (US$514 million) last year in its first full year of mass production. “TSMC told me it was surprised by the smooth trial run of the first fab, which has left the company optimistic about the project’s outlook,”
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