EQUITIES
TAIEX slides below 12,000
The TAIEX yesterday closed lower on lackluster turnover, as many foreign institutional investors stayed away from the trading floor ahead of the Christmas holiday, dealers said. Selling was seen across the board as the bellwether electronics sector dominated the trading session, led by losses by contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), which pushed down the benchmark index below 12,000 points by the close, they said. The TAIEX closed down 45.85 points, or 0.38 percent, at 11,976.38. Turnover was NT$103.227 billion (US$3.42 billion), the lowest level since Oct. 21, Taiwan Stock Exchange data showed. Foreign institutional investors bought a net NT$732 million of shares on the main board, exchange data showed.
ECONOMY
M1B, M2B growth continues
Last month’s M1B — a measure of the money in circulation — grew 7.46 percent year-on-year, higher than 6.99 percent growth in October, largely due to an increase in capital inflows, the central bank said yesterday. M2 — which includes M1B, time deposits, mutual funds and foreign-currency deposits — last month grew 4.14 percent, compared with 3.79 percent in October, the central bank said. The average year-on-year growth rates of M1B and M2 in the first 11 months of this year were 7.12 percent and 3.4 percent respectively, the bank said.
BIOTECHNOLOGY
Applied BioCode to list
Applied BioCode Corp (瑞磁生物科技集團) yesterday applied with the Taiwan Stock Exchange for a primary listing, making it the fifth foreign company to file an initial public offering application this year. The Cayman Islands-incorporated company develops, manufactures and commercializes multiplex testing products. It has combined “digital barcodes” with immunochemistry and molecular probes to create bio-inspired barcoded magnetic bead technology, the exchange said. The company posted revenue of NT$78.88 million and a net loss of NT$222.599 million in the first three quarters of this year, or losses per share of NT$3.59. The company has major operations in Los Angeles, and its main markets are the US and Asia.
FINANCIAL SERVICES
IBFC eyeing China venture
International Bills Finance Corp (IBFC, 國際票券) yesterday said that it plans to sign a memorandum of understanding with Xiamen International Trust Co Ltd (廈門國際信託) to form a joint venture in China. The plan was approved by IBFC’s board of directors at a meeting yesterday, but still requires regulatory approval, the company said. IBFC is a wholly owned subsidiary and major earnings source of IBF Financial Holdings Co (國票金控), which is setting up a Web-only bank with Japanese e-commerce company Rakuten Inc to tap the emerging business opportunity.
SEMICONDUCTORS
ASE and ASEEE to merge
ASE Technology Holding Co (日月光投控) yesterday said that it plans to merge ASE Inc (日月光半導體) and ASE Embedded Electronics Inc (ASEEE, 日月暘電子) to consolidate the group’s resources and enhance its operational efficiency. The merger is tentatively scheduled for Feb. 1. ASE Inc would be the surviving entity and ASEEE is to be dissolved, the holding company said in a regulatory filing. The relationship between ASEEE and its creditors is not expected to be affected by the merger, the filing said. Kaohsiung-based ASEEE was established in 2015 by ASE and Japan’s TDK Corp.
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
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
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
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
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