BANKING
Yuan deposits at six-year low
Chinese yuan deposits held by banks operating in Taiwan last month fell to the lowest level in more than six years as the currency’s slumping interest rates made it less attractive, the central bank said on Friday. The balance of yuan deposits totaled 246.01 billion yuan (US$34.64 billion), down about 6.11 billion yuan from the end of March, central bank data showed. That is the lowest level since February 2014, when yuan deposits totaled 247.05 billion yuan. The decline in yuan deposits came after institutional investors allocated yuan-denominated funds to investments, or as payments for purchases, central bank Department of Foreign Exchange specialist Chen Wan-ning (陳婉寧) said, adding that retail investors also moved their deposits to buy yuan-denominated insurance policies.
ELECTRONICS
Hon Hai aids Japan, Israel AI
Hon Hai Precision Industry Co (鴻海精密) has teamed up with semiconductor firms in Japan and Israel to launch an artificial intelligence (AI) image solution. In a statement on Wednesday, Hon Hai said that it has formed a partnership with Japan-headquartered system-on-chip solution provider Socionext Inc and Israel-based AI chip designer Hailo to launch next-generation AI processing solutions for video analytics. The results would be used in diverse segments, such as smart cities, smart medical care and smart retail development, as well as the industrial Internet of Things, Hon Hai said, adding that it is combining its high-density, fan-less and edge computing solution — BOXiedge — with Socionext’s high-efficiency parallel processor — the SynQuacer SC2A11 — and Hailo’s deep learning processor — the Hailo-8 — in the development.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
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