ELECTRONICS
Lite-On approves dividend
Component supplier Lite-On Technology Corp’s (光寶科技) shareholders on Friday approved a NT$2.92 (US$0.094) per share cash dividend, for an 85.38 percent payout ratio on earnings per share of NT$85.38 for last year. Lite-On said it has streamlined and will focus on consistent profitability, steadier operations and higher returns on equity. The company reported a revenue drop of 19.98 percent to NT$14.8 billion for last month. Cumulative revenue in the first five months declined by 16.82 percent to NT$69.52 billion.
SEMICONDUCTORS
N America still volatile
North America-based manufacturers of semiconductor equipment posted US$2.06 billion in worldwide billings last month, according to last month’s Equipment Market Data Subscription report published by international trade group SEMI on Thursday. The billings figure was 7.4 percent higher than the April level of US$1.92 billion, but was 23.6 percent less than the US$2.69 billion reported a year earlier. SEMI president and CEO Ajit Manocha said in a statement that market volatility continues due to the macroeconomic environment.
LABOR
Taiwan Coop wages up
State-run Taiwan Cooperative Bank (TCB, 合庫銀行) has raised wages by 4.53 percent on average since April. Lei Chung-dar (雷仲達), chairman of parent Taiwan Cooperative Financial Holding Co (合庫金控), said wage hikes for entry-level employees were even higher, averaging 6.67 percent. The bank has a workforce of more than 8,000 and posted a record-high net profit of NT$14.77 billion for last year, up from NT$12.91 billion a year earlier. Shareholders on Friday approved a cash dividend of NT$1.05 per share based on earnings per share of NT$1.24 for last year.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
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