EQUITIES
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.
CHIPMAKERS
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.
CHIPMAKERS
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.
ENERGY
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.
BUILDING SERVICES
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).
UNPRECEDENTED PACE: Micron Technology has announced plans to expand manufacturing capabilities with the acquisition of a new chip plant in Miaoli Micron Technology Inc unveiled a newly acquired chip plant in Miaoli County yesterday, as the company expands capacity to meet growing demand for advanced DRAM chips, including high-bandwidth memory chips amid the artificial intelligence boom. The plant in Miaoli County’s Tongluo Township (銅鑼), which Micron acquired from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion, is expected to make a sizeable capacity contribution to the company from fiscal 2028, the company said in a statement. It would be an extended production site of Micron’s large-scale manufacturing hub in Taichung, the company said. As the global semiconductor industry is racing to reach US$1 trillion
ABOVE LEGAL REQUIREMENT: The Ministry of Economic Affairs is prepared if LNG supply is disrupted, with more than the legal requirement of 11 days of inventory Taiwan has largely secured liquefied natural gas (LNG) supplies through May and arranged about half of June’s supply, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday. Since the Middle East conflict began on Feb. 28, Taiwan’s LNG inventories have remained more than 12 days, exceeding the legal requirement of 11 days, indicating no major supply concerns for domestic gas and electricity, Kung said at a meeting of the legislature’s Economics Committee in Taipei. The ministry aims to increase the figure to 14 days by the end of next year, he said. While one or two LNG or crude oil shipments for May
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
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