Hon Hai to have US HQ
Hon Hai Precision Industry Co (鴻海精密) said it is to establish a US headquarters in Milwaukee, Wisconsin, as part of a massive investment it is making in an electronics manufacturing plant in the southeast of the state. The company, known as Foxconn Technology Group (富士康) internationally, on Tuesday said it is to purchase a seven-story building in downtown Milwaukee that has a capacity of 650 people. The building, to be called Foxconn Place, is to house business incubators and start-up initiatives, as well as Foxconn staff. The company is building a plant in Racine County to make LCD panels for commercial and consumer uses.
Storage first for Changhua
Danish energy company Orsted A/S yesterday announced it is to set up an energy storage facility with capacity of 1 megawatt (MW) in Changhua County, the first MW-sized energy storage system based on lithium-ion battery technology in Taiwan. “I believe Taiwan has great potential to become a ‘green’ energy hub in Asia, just like Denmark’s position in Europe. The energy storage project in Changhua, also our first storage in Asia, will enhance grid efficiency and stability,” Orsted wind power chief executive officer Martin Neubert said in a news release. Through collaboration with the Changhua County Government, Taiwan Power Co (台電), the Industrial Technology Research Institute (工研院) and National Changhua University of Education, the project aims to encourage energy storage research and green energy development in Taiwan, the company said.
CHPT net income up 22%
Chunghwa Precision Test Technology Co (CHPT, 中華精測), the nation’s largest probe card supplier, yesterday reported that net income last year increased 22 percent year-on-year to NT$736 million (US$25.1 million), with earnings per share of NT$23.51, up from NT$20.04 the previous year and the highest in company history. Gross margin also grew to 55.4 percent from 52.2 percent, while revenue rose 20 percent to NT$3.11 billion, the company said. To reward shareholders, the Taoyuan-based company said its board has approved the distribution of a cash dividend of NT$10 per common share.
IGS income beats prediction
International Games System Co (IGS, 鈊象電子), the nation’s largest arcade and online game developer, on Tuesday reported better-than-expected net income of NT$877.78 million for last year, with earnings per share of NT$12.55. The results were down from 2016’s NT$890.37 million, or NT$12.78 per share, but gross margin improved from 80 percent to 85 percent. Revenue decreased 1.33 percent year-on-year to NT$3.28 billion, slightly affected by the ending of a deal with Aristocrat Leisure Ltd in June last year to codevelop slot machines.
Wafer shipments up 10%
Global silicon wafer shipments last year increased 10 percent from a year earlier in terms of surface area, the SEMI Silicon Manufacturers Group (SMG) said in a news release on Tuesday. Silicon wafers are the fundamental building material for semiconductors. According to SMG’s analysis, total silicon wafer area shipments were 11,810 million square inches last quarter, up from the 10,738 million square inches shipped the previous year. Worldwide silicon wafer revenue increased 21 percent to US$8.71 billion last year from US$7.21 billion in 2016, SMG’s analysis showed.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable