ECONOMY
TRI raises growth forecast
The Taiwan Research Institute (TRI, 台灣綜合研究院) yesterday raised its forecast for the nation’s GDP growth for this year, citing robust domestic investment aided by returning Taiwanese businesses and the effect of order transfers that benefit local firms. The TRI forecast for GDP growth this year has been revised to 2.59 percent, up 0.51 percentage points, the Taipei-based think tank said, adding that the economy is expected to expand 2.63 percent next year. The forecasts are lower than the government’s projections of a 2.64 percent increase for this year and 2.72 percent next year.
INTERNET
KKBOX moving to Azure
Local digital music services provider KKBOX (願境網訊) is to cooperate with Microsoft Corp by migrating its music streaming service to the US company’s cloud computing platform Azure, while diversifying its product range, the company said. KKBOX’s cloud-based streaming arm, KKStream Ltd, is to develop a music creation solution, BlendVision, using artificial intelligence technologies and sell it via Azure in a bid to expand its client base, the company said.
PHARMACEUTICALS
Lotus to liquidate Alvogen
Lotus Pharmaceutical Co Ltd (美時化學製藥) yesterday said its board of directors has approved a proposal to liquidate and dissolve its wholly owned subsidiary Taiwan Alvogen Ltd (台灣艾威群) in a bid to streamline its organizational structure. “In light of a lack of operational need due to the fact that the Alvogen Taiwan business has been fully transferred to its parent company, the company intends to reduce management costs by proposing the dissolution and liquidation of Taiwan Alvogen Ltd,” Lotus said in a regulatory filing.
AUTOMAKERS
Yulon to recapitalize Luxgen
Yulon Motor Co (裕隆汽車) on Monday announced that its board of directors has approved a plan to reduce the capital of its own-brand subsidiary, Luxgen Motor Co (納智捷汽車), and raise fresh funds to replenish capital eroded by accumulated losses. Luxgen’s capital is to be reduced by NT$4 billion (US$132.4 million), or 66.67 percent, Yulon said in a regulatory filing. After the capital reduction, Luxgen’s share capital would fall to NT$2 billion. Yulon then plans to inject NT$7.8 billion into the subsidiary.
HONG KONG
Jobless rate rises to 3.2%
The unemployment rate last month rose to the highest level since 2017, as months of protests continued to damage the territory’s economy. The unemployment rate rose to 3.2 percent, the government reported yesterday. The jobless rate in the consumption and tourism-related sector, which includes retail, accommodation and food services, rose to a three-year high of 5.2 percent in the three months to last month. The unemployment rate in the food and beverage sector rose to 6.2 percent, the highest level in more than eight years.
TRADE
US-China escalation ‘a risk’
The “phase one” trade deal between the US and China has eased tensions, but renewed escalation remains a significant risk, Fitch Ratings said yesterday. Tensions between Washington and Beijing, particularly in fields such as technology, would pose a major obstacle to full resolution of the dispute, Fitch said. The rating agency said that it expects China’s economy to grow by close to 6 percent next year, compared with its earlier forecast of 5.7 percent.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would