DISPLAYS
AU Optronics secures loan
Flat-panel maker AU Optronics Corp (AUO, 友達光電) has secured a syndicated loan of NT$32.5 billion (US$1.08 billion) from 15 lenders, led by Bank of Taiwan (臺灣銀行), Chang Hwa Commercial Bank (彰化銀行), Taiwan Cooperative Bank (合作金庫銀行) and Hua Nan Commercial Bank (華南銀行), it said in a news release yesterday. AUO plans to use the loan to fund its mid-term operating capital after posting losses of NT$19.19 billion for last year. As the syndicated loan is significantly oversubscribed, AUO said it has obtained a much higher bankroll than its original estimate of NT$26 billion.
COMPONENTS
Walsin sets conversion price
Passive components maker Walsin Technology Corp (華新科技) yesterday announced a conversion price of NT$240 per share for its first domestic unsecured convertible bond issue. The price represents a premium of 20 percent to its closing share price of NT$200 on Monday, it said in a regulatory filing. Walsin’s board of directors in late February decided on the NT$4.8 billion issue, with a maturity of four years and a zero coupon rate. The proposal was approved on March 25 by the Financial Supervisory Commission. Walsin plans to use the proceeds to purchase new facilities and equipment.
ELECTRONICS
Hon Hai expanding in Brazil
Hon Hai Precision Industry Co (鴻海精密) is to set up assembly lines for Apple Inc’s iPhone SE in Brazil, the US-based media outlet 9to5Mac.com reported yesterday, citing recently published documents from Brazil’s National Telecommunications Agency. The documents named Hon Hai’s local unit in Brazil, Foxconn Brasil Industria e Comercio Ltda, as one of the manufacturers. Hon Hai’s move might be driven by the high taxes that the Brazilian government imposes on imported products, which can be reduced through investments in local production, the report said, adding that Hon Hai previously manufactured the iPhone XR in the country for the same purpose.
CONSTRUCTION
Chang Hong sets dividend
Chang Hong Construction Co’s (長虹建設) board on Monday proposed a plan to distribute a cash dividend of NT$6.3 per share based on last year’s earnings per share (EPS) of NT$10.93. The proposed dividend is the highest in six years and represents a payout ratio of 57 percent. It also indicates a dividend yield of 8.6 percent based on the stock’s closing price of NT$73 on Monday. The company added that it has signed a deal with a landowner in Taipei to jointly develop an office building project in Neihu District (內湖). Chang Hong reported a net income of NT$3.17 billion for last year, down 23.84 percent year-on-year, while revenue declined 20.56 percent to NT$9.62 billion.
FOOD
Namchow profit falls 19.9%
Namchow Holdings Co (南僑投資控股), which produces baking oil and frozen dough, yesterday reported that net income last month fell 19.9 percent year-on-year to NT$50.9 million, or EPS of NT$0.21, due to the COVID-19 pandemic. Although the company swung back into profit last month, compared with losses of NT$65.01 million in February, net income in the first quarter still dropped 64 percent from a year earlier to NT$70.98 million, or EPS of NT$0.29. First-quarter revenue decreased 14.8 percent annually and 26.9 percent quarterly to NT$3.59 billion, the company said.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said