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.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
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