The New Taiwan dollar yesterday fell 0.4 percent, or NT$0.124, against the US dollar to NT$31.082, a seven-month low, as foreign funds fled the local market, dealers said.
It was the first time that the NT dollar weaker than NT$31 per US dollar since October last year, when foreign funds exited Asia at the height of the US-China trade spat.
The market is likely seeing a repeat of the global fund movement after Washington on Friday raised tariffs on US$200 billion of Chinese goods from 10 percent to 25 percent, the dealers said.
The NT dollar ended yesterday at its lowest level, with turnover widening to US$1.106 billion, Taipei Forex Inc data showed.
The retreat came after the TAIEX tumbled 1.44 percent to 10,558.29 as traders turned conservative about the earnings outlook at local firms which could be affected by the trade spat.
Taiwan is home to the world’s largest suppliers of electronic parts used in smartphones, laptops and other technology devices. Many companies have manufacturing facilities in China, making them susceptible to the dispute.
Foreign investors cut holdings in local shares by a net NT$4.07 billion, while mutual funds reduced their holdings by NT$758 million, the Taiwan Stock Exchange said.
The currency depreciation could spread to other Asian nations due to their heavy exposure to global trade, the dealers said.
Asia last week saw a net fund outflow of US$1.1 billion, the fastest in 22 weeks, JPMorgan Asset Management Taiwan said.
The central bank said that the NT dollar is relatively stable compared with major currencies.
The South Korean won yesterday softened 0.88 percent, the Chinese yuan weakened 0.7 percent and the Indonesian rupiah fell 0.64 percent, the bank said.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
‘SWARM TECH’: Joint venture FARobot is to develop autonomous mobile robots that would first be deployed in Hon Hai’s factories to optimize production efficiency Hon Hai Precision Industry Co (鴻海精密) and Adlink Technology Inc (凌華科技) have formed a robotic venture that aims to use “swarm technology” to create robots that can communicate with one another on the factory floor to optimize production efficiency. Hon Hai is Apple Inc’s leading iPhone assembler and the world’s largest contract electronics maker, while Adlink supplies industrial computers and Internet of Things solutions. Through a subsidiary, Hyield Venture Capital Co (鴻揚創投), Hon Hai holds a 51 percent stake in autonomous mobile robot (AMR) developer FARobot (法博智能移動), while Adlink owns the remaining 49 percent. Together, the two companies put up NT$200