CHIPMAKERS
TSMC board approves funds
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Apple Inc and Nvidia Inc as its major clients, yesterday said its board of directors approved capital appropriations of about US$4.28 billion for construction of fabs and to expand advanced packaging and specialty technology capacity. The budget is also to be used on conversion of logic capacity to specialty technology, as well as capital investment in the first quarter of next year and sustaining capital expenditure, it added. The board also approved a capital injection of up to US$2 billion to fully owned subsidiary TSMC Global Ltd to reduce foreign exchange hedging costs, the firm said.
SOLAR POWER
Neo Solar losses increase
Solar cell manufacturer Neo Solar Power Energy Corp (新日光能源) yesterday posted quarterly losses of NT$1.72 billion (US$57 million) for last quarter, widening from losses of NT$519 million in the second quarter. Neo Solar in a statement attributed the deeper losses to an impairment loss of NT$896 million and potential lawsuit costs. Operating losses last quarter expanded to NT$1.39 billion, compared with operating losses of NT$677 million a quarter earlier. In the first three quarters of this year, Neo Solar has lost a total of NT$3.55 billion. On an annual basis, the figure improved from losses of NT$1.85 billion in the third quarter of last year, while operating losses also narrowed from NT$1.27 billion a year earlier.
SHOEMAKERS
Pou Chen profit rises 2.1%
Pou Chen Corp (寶成工業), which makes footwear for global brands such as Nike Inc, yesterday reported that net profit rose 2.1 percent year-on-year from NT$8.9 billion to NT$9.08 billion in the first three quarters of the year, backed by stable growth in its core shoemaking business. Earnings per share improved to NT$3.08, compared with NT$3.02 a year earlier, the firm said in a statement. Cumulative revenue over the period edged up 0.5 percent from NT$204.95 billion to NT$206.01 billion on an annual basis. Shoemaking contributed 70 percent of the firm’s overall revenue, while the shoe retailing sector made up nearly 30 percent, company data showed. Pou Chen shares yesterday fell 1.36 percent to close at NT$36.3 in Taipei trading before the release of the results.
AVIATION
CAL, Nordam set up venture
China Airlines Ltd (CAL, 中華航空) yesterday announced the establishment of a Taiwan-based joint venture with Nordam Group Inc. CAL is to hold a 49 percent stake in Nordam Asia Ltd, while its US-based partner is to retain a controlling stake in the venture. The new company is to operate Nordam Group’s sole commercial maintenance, repair and overhaul facility in Asia. CAL chairman Ho Nuan-hsuan (何煖軒) said that the plant would improve the carrier’s ability to service its own fleet and aircraft composite material parts, as well as elevate Taiwan’s aerospace sector.
INNOVATION
Technologies win awards
Two technologies developed by the Industrial Technology Research Institute have won CES Innovation Awards and are to be showcased at the trade show in Las Vegas from Jan. 9 to Jan. 12 next year, the institute said in a statement on Monday. The award-winning technologies are an intelligent vision system for companion robots in the “Robotics and Drones” category and a handheld pesticide residue detector in the “Home Appliances” category,the institute said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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