CHIPMAKERS
Distributor’s Q4 profits drop
WT Microelectronics Co (文曄科技) yesterday posted NT$591 million (US$19.16 million) in net profits for the fourth quarter last year, a 40 percent drop from the NT$988 million it posted in the previous quarter. Earnings per share dipped to NT$1.6 from NT$1.79. Net profits for all of last year were up 1.33 percent to NT$2.78 billion, or NT$5.02 per share, from NT$2.52 billion, or NT$5.26 per share, in 2017. The chip distributor told an investor conference that revenue would fall by from 18 percent to 24 percent this quarter to between NT$65 billion and NT$70 billion due to dwindling demand for its communications segment, mainly smartphones. More than half of its NT$85.76 billion revenue came from the segment. Gross margin would drop to between 3.3 and 3.5 percent this quarter, from 3.89 percent last quarter, it said.
ELECTRONICS
Avary profits soar 52%
Zhen Ding Technology Holding Ltd (臻鼎), which makes printed circuit boards for Apple Inc’s iPhones, yesterday said its Chinese subsidiary, Avary Holding (Shenzhen) Co Ltd (鵬鼎控股深圳), made 2.77 billion yuan (US$409.3 million) in net profits last year, a 51.72 percent jump from 1.83 billion yuan in 2017. That translated into earnings per share of 1.3 yuan last year, up from 0.93 yuan the previous year. Revenue only rose 8.08 percent to 25.85 billion yuan, from 23.92 billion yuan in 2017. Zhen Ding holds an 80.91 percent stake in Avary.
ELECTRONICS
Kinsus net profis falls 16%
Chip substrate supplier Kinsus Interconnect Technology Corp (景碩) on Monday reported NT$349 million in net profits for last year, a 16 percent drop from 2017’s NT$$416 million. Earnings per share dropped to NT$0.78 from NT$1.1. Revenue last year rose 6.23 percent to NT$23.73 billion, from NT$22.34 billion in 2017. The board of directors approved the distribution of NT$1.5 per common share, more than NT$1.2 per share proposed by the management. Kinsus said it would pay NT$676.26 million in cash divident to shareholders, up from its original plan of NT$541 million. The dividend is subject to shareholders’ approval at the annual meeting scheduled for May 29.
INVESTMENT
Cathay Life looks at water
Cathay Financial Holding Co (國泰金控), the nation’s biggest financial service provider by assets, yesterday said Cathay Life Insurance Co (國泰人壽) planned to invest as much as NT$470 million in cash to a newly created water treatment company. The investment would give the insurance subsidiary a 30 percent share of the company, it said in a filing with the Taiwan Stock Exchange.
STOCKS
Investors stay on sidelines
The TAIEX closed little changed yesterday after moving in a narrow range, as many investors remained cautious about upcoming US-China trade talks, dealers said. Large-cap stocks in the bellwether electronics sector appeared mixed, while buying in select old economy stocks, in particular in the cement and textile sectors, helped stabilize the market throughout the session, they said. The TAIEX ended up 6.98 points, or 0.07 percent, at 10,152.26. Turnover totaled NT$101.39 billion. “Following its strong showing in recent sessions, the main board has turned technically healthier, in particular after the TAIEX jumped past 10,148 points today,” Concord Securities (康和證券) analyst Kerry Huang said.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
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