TAIEX edges higher
The TAIEX yesterday closed slightly higher after retreating from an early high, with market sentiment reacting to lingering concerns over COVID-19 in the US and China, where spikes in confirmed cases have been reported. Buying in the bellwether electronics sector moved to select 5G concept shares, component suppliers and PC makers, while some construction companies attracted interest on the back of their large property assets, dealers said. The TAIEX closed up 23.07 points, or 0.20 percent, at 11,572.93, on turnover of NT$182.069 billion (US$6.14 billion). Foreign institutional investors bought a net NT$2.36 billion of shares, Taiwan Stock Exchange data showed.
MediaTek shares surge
Shares of handset chip designer MediaTek Inc (聯發科) yesterday rose 5.49 percent to close at NT$576 in Taipei trading, the highest level in 10 years, on hopes that demand for 5G devices would boost demand for its chips. The shares closed at NT$576, giving MediaTek a market capitalization of NT$915.18 billion, exceeding Chunghwa Telecom Co’s (中華電信) NT$880.47 billion to become the third-largest listed company in the nation in terms of capitalization. Based on Taiwan Stock Exchange data, contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) remains the largest listed company with a market capitalization of NT$8.09 trillion, followed by Hon Hai Precision Industry Co’s (鴻海精密) NT$1.09 trillion.
Foxsemicon outlook bullish
Foxsemicon Integrated Technology Inc (京鼎精密), a semiconductor manufacturing and inspection equipment maker, yesterday posted a net profit of NT$236.39 million for the first quarter, a 174.16 percent year-on-year increase as semiconductor companies continue to expand their capacity. Earnings per share rose to NT$2.74 from NT$1.02 a year earlier, the company said in a financial statement submitted to the Taiwan Stock Exchange. Revenue grew 30.46 percent year-on-year to NT$2.09 billion. Revenue this quarter could grow by more than 10 percent compared with the first quarter, analysts said.
Buyback program begins
King’s Town Construction Co (京城建設), one of the largest land developers in southern Taiwan, yesterday began a share buyback program in a bid to safeguard its shareholders’ interests. The company said that it aims to buy back up to 5 million — or 1.3 percent of its outstanding shares — on the open market until Aug. 21 at NT$26 to NT$38 per share, a regulatory filing said on Friday last week. Buoyed by the buyback, the shares yesterday rose 9.91 percent to close at NT$36.05 in Taipei trading. King’s Town Construction posted a net profit of NT$413.36 million for the first quarter, down from NT$471.95 million in the same period last year.
MOS Burger to hire 600
An Shin Food Services Co (安心食品), the operator of the nation’s second-largest fast-food chain, MOS Burger, plans to hire up to 600 people in its latest recruitment drive as it continues to expand its number of outlets. The company said that it would provide a monthly salary of between NT$31,000 and NT$33,000 to the new hires, excluding bonuses, and about NT$50,000 for those who pass its exam to become an outlet manager. The company operates 281 MOS Burger outlets in Taiwan and is looking to increase that to 300.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president