TAIEX closes above 11,000
Local shares yesterday moved higher, closing above 11,000 points on the back of an overnight rally in US markets, as investors embraced expectations that businesses would reopen and the development of a COVID-19 vaccine by US-based Novavax Inc. However, the upturn was limited, with some investors shifting into sell mode after Washington reacted to security laws proposed by China to tighten control over Hong Kong, dealers said. The TAIEX ended up 17.45 points, or 0.16 percent, at 11,014.66 on turnover of NT$156.24 billion (US$5.2 billion). Foreign institutional investors bought a net NT$332 million of shares on the main board, Taiwan Stock Exchange data showed. After breaking 11,000, the TAIEX might need to consolidate, analysts said.
Macronix approves dividend
Memorychip maker Macronix International Co (旺宏電子), which claims 23.8 percent of the world’s NOR flash memory market, yesterday said that shareholders at an annual general meeting approved a proposal to pay a cash dividend of NT$1.2 per common share. The distribution represents a 3.55 percent dividend yield based on the stock’s closing price of NT$33.85 yesterday in Taipei. Shareholders also approved NT$544.33 million in compensation for employees and NT$72.58 million for the board directors, as well as a proposal to raise funds by issuing up to 360 million common shares, the firm said.
Powerchip takes new head
Foundry and memorychip maker Powerchip Semiconductor Manufacturing Corp (力積電) yesterday said that it has tapped former AP Memory Technology Corp (愛普科技) president Gu Jun (顧峻) as the new copresident of its memory business group in a bid to enhance its research and development. Gu worked at Intel Corp and Cypress Semiconductor Corp before joining AP Memory in 2011. Chief technology officer Chang Shou-ren (張守仁) has also been promoted to vice president, it said, adding that the changes take effect on Monday next week.
Wpd’s deal to limit bird loss
Offshore wind energy developer Wpd Taiwan Energy Co Ltd (達德能源) yesterday signed a contract worth nearly NT$70 million with WeatherRisk Explore Inc (天氣風險) to monitor bird activity around Wpd’s planned 640 megawatt (MW) wind farm in Yunlin County and help minimize the project’s impact on bird migration. Surveillance equipment such as cameras and microphones would be installed on the transitional wind turbines, with radars to be preinstalled on the turbine components, Wpd said. The wind farm’s 80 8MW wind turbines are to be completed by the end of next year.
FDC to help TCC (Hangzhou)
TCC (Hangzhou) Environmental Protection Technology Co Ltd (台泥環保科技), a wholly owned subsidiary of Taiwan Cement Corp (台灣水泥), yesterday signed a deal covering management services, marketing and trademark licensing with FDC International Hotels Corp (雲品國際). Under the agreement, FDC would assist TCC (Hangzhou) in planning technical assistance and services for the parent company’s new building in Hangzhou, China, Taiwan Cement said in a statement. TCC (Hangzhou) would also entrust FDC assisting in operating and managing the building, it added. FDC said that it would provide TCC (Hangzhou) with marketing services and license it to use its trademark. FDC is part of the TCC Group (台泥集團).
From India to China to the US, automakers cannot make vehicles — not that no one wants any, but because a more than US$450 billion industry for semiconductors got blindsided. How did both sides end up here? Over the past two weeks, automakers across the world have bemoaned the shortage of chips. Germany’s Audi, owned by Volkswagen AG, would delay making some of its high-end vehicles because of what chief executive officer Markus Duesmann called a “massive” shortfall in an interview with the Financial Times. The firm has furloughed more than 10,000 workers and reined in production. That is a further blow
Answering to a reported request by Germany to help address a chip shortage in its auto industry, the Ministry of Economic Affairs (MOEA) yesterday said that it was in talks with domestic chip suppliers. Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months. The MOEA said that it had not yet received the request and could therefore not elaborate
FOCUS ON FOUNDRIES: An analyst said that some investors would be disappointed because they were expecting a larger announcement of a partnership with TSMC Intel Corp’s incoming chief executive officer Pat Gelsinger on Thursday pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. “I am confident that the majority of our 2023 products will be manufactured internally,” Gelsinger said. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.” He plans to provide more details after officially taking over the CEO role on Feb. 15, but Gelsinger was clear that Intel is sticking with its once mighty
AWARENESS NEEDED: The central bank urged lenders to know their customers before undertaking business for them and to seek funding in conventional ways The central bank yesterday said that it would take action against four foreign lenders for their involvement in helping companies trade in the deliverable forward market in contravention of foreign-exchange regulations. Some grain merchants newly based in Taiwan have since July 2019 been practicing questionable currency-trading activity, with the help of branches and subsidiaries of six foreign banks, the monetary policymaker told an unscheduled news conference. Affiliated firms as of July last year completed currency-related deals they referred to as trading that totaled US$11 billion, which was not in sync with their real business needs, the central bank said after wrapping up