MANUFACTURING
FPG announces bonuses
Formosa Plastics Group (FPG, 台塑集團) is to distribute bonuses equivalent to 4.94 months’ salary to employees of its four major units ahead of the Lunar New Year holiday, which starts on Jan. 24. This year’s amount is less than the 5.83 months’ salary that the group distributed last year, as earnings at the four FPG subsidiaries were generally lower than a year earlier due to the negative effect of the US-China trade dispute, the group said. The four subsidiaries reported average pre-tax earnings per share of NT$4.84 for last year, a preliminary estimate released by the group showed.
PETROCHEMICALS
CPDC to raise US$129m
China Petrochemical Development Corp (CPDC, 中石化) has priced its global depositary receipts (GDRs) at US$7.18 per unit. They are scheduled to be listed on the Luxembourg Stock Exchange on Monday. In a regulatory filing yesterday, the company said that it is issuing 180 million GDRs, representing 450 million common shares, as it aims to raise US$129.24 million to fund its investment in a subsidiary and build a chemical plant overseas. While the GDRs are expected to dilute earnings per share by 13.7 percent at most, “with respect to our financial structure, the increase in our own capital and lower debt ratio will be more beneficial to the group’s future operating performance and development,” CPDC said.
COMPUTERS
Getac sales rise 20.05%
Rugged PC vendor Getac Technology Corp (神基) yesterday reported that sales for last month increased 20.05 percent year-on-year to NT$2.44 billion (US$81.1 million). That helped increase its fourth-quarter sales to NT$7.34 billion, up 1.8 percent from the third quarter and 13.3 percent from a year earlier. Getac attributed the quarterly increase to contributions from government projects and expanded capacity at its Vietnamese manufacturing site. For the whole of last year, consolidated revenue reached NT$27.26 billion, up 10.41 percent from NT$24.69 billion in 2018.
COMPUTERS
Qisda revenue grows 8.8%
Qisda Corp (佳世達) on Monday reported that revenue for last month increased 8.8 percent year-on-year to NT$14.49 billion, bringing fourth-quarter revenue to a record high of NT$45.97 billion. Total revenue for last year also hit a new high at NT$169.86 billion, up 9.04 percent from 2018. The company attributed the increase to the strength of its business segments, as well as contributions from subsidiaries such as Aewin Technologies Co Ltd (其陽科技), Sysage Technology Co Ltd (聚碩), Topview Optronics Co (勝品電通) and Ace Pillar Co (羅昇). Qisda owns 51.26 percent and 20.49 percent stakes in Aewin and Ace Pillar respectively. The company last year acquired 35 percent and 20 percent shares in Sysage and Topview respectively.
TRADING
TAIEX continues slide
The TAIEX fell further yesterday, amid geopolitical tensions after the US killed Iran’s top military commander last week, but the main board recovered from an early low due to bargain hunting near the end of the session, dealers said. The bellwether electronics sector led the downturn on the broader market, while select old economy and financial stocks remained resilient, lending some support to the market, dealers said. The TAIEX ended down 73.04 points, or 0.61 percent, at 11,880.32. Turnover totaled NT$164.811 billion during the session.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
Hon Hai Precision Industry Co (鴻海精密) is reportedly making another pass at Nissan Motor Co, as the Japanese automaker's tie-up with Honda Motor Co falls apart. Nissan shares rose as much as 6 percent after Taiwan’s Central News Agency reported that Hon Hai chairman Young Liu (劉揚偉) instructed former Nissan executive Jun Seki to connect with French carmaker Renault SA, which holds about 36 percent of Nissan’s stock. Hon Hai, the Taiwanese iPhone-maker also known as Foxconn Technology Group (富士康科技集團), was exploring an investment or buyout of Nissan last year, but backed off in December after the Japanese carmaker penned a deal
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
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