SEMICONDUCTORS
Microchip to buy Microsemi
Microchip Technology Inc on Thursday said it is buying semiconductor rival Microsemi Corp for US$8.3 billion. The boards of both firms approved the deal, worth more than US$10 billion, including Microsemi’s cash and assets. The transaction is subject to California-based Microsemi’s shareholder’s approval and is expected to close in the first half of this year. The combined firm could have more than US$5 billion in annual revenues, and a strong presence in chips and controllers for medical devices, “smart” home appliances, and military-grade and aerospace hardware.
CONGLOMERATES
HNA looking to sell resorts
HNA Group Co (海航集團) has put its US$1.4 billion stake in Park Hotels & Resorts Inc up for sale. The sale could involve some or all of HNA’s 53.7 million shares, with any disposal being subject to market conditions, a regulatory filing in the US said. HNA last year bought a quarter of Hilton Worldwide Holdings Inc and two spinoffs — Park Hotels and Hilton Grand Vacations Inc — from Blackstone Group LP for about US$6.5 billion. Those stakes are valued at more than US$9 billion today.
AUTOMAKERS
US sales fall 2% annually
US sales of new cars and trucks tailed off last month as automakers eased up on discounts. Sales fell 2 percent from last February to 1.3 million, Autodata Corp said. Among major automakers, only Toyota Motor Corp, Subaru and Volkswagen AG reported sales gains over last month. The three US auto giants reported sales declines: 6.9 percent year-on-year for General Motors Co and Ford Motor Co, and 1 percent for Fiat Chrysler Automobiles NV’s US subsidiary.
RETAIL
Kohl’s teams up with Aldi
US department store chain Kohl’s shoppers are to be able to pick up some groceries while shopping for clothing at select stores. The company on Thursday said it is teaming up with German no-frills grocery chain Aldi to lease space in five to 10 of its stores. The move comes as Kohl’s looks to scale back its footprint, while making its stores more productive. Kohl’s also reported a 6 percent increase in sales at established stores for the critical fourth quarter, the largest gain since 2001.
BRAZIL
Economy returns to growth
The government said the country’s economy last year grew for the first time in three years, aided by strong performance in the agricultural sector. The Brazilian Institute of Geography and Statistics on Thursday said that GDP increased 1 percent last year, after two consecutive contractions of 3.5 percent in 2015 and 2016. The agency said that the 13 percent growth in the agricultural sector was a major driving force of the GDP increase. The corn crop increased 55.2 percent, while the soybean crop expanded 19.4 percent, it said.
MANUFACTURING
GKN could sell car parts unit
British engineering company GKN said it was in talks with US-based Dana Inc regarding the sale of its autoparts Driveline unit as part of a deal that would be effected mainly in equity. GKN already has a plan to demerge its main aerospace and automotive businesses in the middle of next year. The company yesterday said that the potential deal with Dana could provide greater value to shareholders than the demerger plan and it would therefore continue to explore it as an option.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process