The nation’s three Web-only banks might launch later than expected as their preparations have been disrupted by the COVID-19 pandemic, but they are still expected to commence operations by the end of this year, the Financial Supervisory Commission (FSC) said on Wednesday.
The commission in July last year approved applications by Chunghwa Telecom Co (中華電信), Line Financial Taiwan Corp (台灣連線金融科技) and Rakuten Inc to set up virtual banks — Next Bank (將來銀行), Line Bank (連線商業銀行) and Rakuten International Commercial Bank Co (樂天國際商銀).
The commission told reporters in January that Rakuten Bank would take the lead by launching its operations this month, while Line Bank and Next Bank would launch in the third quarter, according to documents submitted by the three banks’ preparatory offices.
SIMULATION TESTS
Although the three banks have obtained approvals from the Fair Trade Commission (FTC), none of them had begun simulation tests as of Wednesday, Banking Bureau Deputy Director Sherri Chuang (莊琇媛) told the Taipei Times.
The one-month simulation test is an important milestone before virtual banks can apply for a license from the FSC, which has to review the test results to see if the banks are ready, especially in terms of information security, Chuang said.
“The banks are proceeding at a slower rate than their original plans, as some have hired foreign engineers to help set up their information system, but some could not come to Taiwan due to border controls amid the pandemic,” she said.
Chuang did not reveal which Web-only banks are facing such challenges, but said the commission still expects the banks to start by the end of this year.
Next Bank, which aims to begin operations at the end of September or at the beginning of October, plans to conduct simulation tests next month, general manager Liu I-cheng (劉奕成) told the Taipei Times by telephone.
NO HOLIDAY
The bank is speeding up the establishment of its information system, with its engineering staff working during the Dragon Boat Festival, Liu said, adding that as most of its engineers are local, the bank was hardly affected by the outbreak.
Rakuten Bank would soon conduct the test and intends to start operations by the end of September, company chairman Chien Ming-jen (簡明仁) said by telephone.
Rakuten picked International Business Machines Corp (IBM) to set up its information system, and its foreign engineers arrived in Taiwan last year, Chien said, adding that so far its work has gone smoothly.
Among the 80 people the bank has hired, 40 percent are focused on information technology and information security, and 30 percent on risk management and product design, he said.
Line Bank declined to comment, saying that it might give an update next week.
REASSURANCE: The company, which installed new equipment in its Taichung plant, said that it would produce 1-gamma nanometers node DRAMs in Taiwan in 2025 US-based memorychip supplier Micron Technology Inc on Friday said that it would start producing its most advanced DRAM exclusively in Taiwan in 2025. Micron said that it would mass produce chips using its advanced 1-gamma process node DRAM in Taiwan, ahead of any other production site worldwide. The company installed cutting-edge extreme ultraviolet (EUV) lithography production equipment in its A3 fab in Taichung last year. The 1-gamma process — its third-generation 10 nanometer-class node — was jointly developed by Micron’s research and development (R&D) teams in Taiwan and Japan. Micron on Thursday said it would invest up to US$3.6 billion in Japan. A Ministry
MARKET GAP: If China stops buying chips from US firm Micron, they might turn to competitors such as Nanya and South Korean suppliers, researchers said Nanya Technology Corp (南亞科技) shares rallied nearly 4 percent during early trading yesterday amid optimism that the nation’s biggest DRAM chipmaker would benefit from China’s latest ban on purchasing memory chips from Micron Technology Inc. The restrictions are widely considered a result of an escalating technology dispute between the US and China. Chinese firms might shift orders to non-US suppliers such as Nanya Technology and South Korean memory chipmakers Samsung Electronics Co and SK Hynix Inc. The Cyberspace Administration of China on Sunday night said that its review found that Micron’s memory chips pose serious network security risks to the country’s critical
SECURITY RISK: Chinese companies could respond to the announcement by moving away from all products made by the US firm, diverting business toward Korean rivals China delivered the latest salvo in an escalating semiconductor war with the US, announcing that Micron Technology Inc products have failed to pass a cybersecurity review in the country. Operators of key infrastructure in China should not buy the company’s goods, the Cyberspace Administration of China (CAC) said in a statement on Sunday, adding that it found “relatively serious” cybersecurity risks in Micron products sold in China. The components caused “significant security risks to our critical information infrastructure supply chain,” which would affect national security, it said. The results come more than a month after China announced an investigation on imports from
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) senior vice president of business development Kevin Zhang (張曉強) told reporters yesterday that talks over a possible plant in Germany are continuing and that the earliest decision would be in August. “I don’t want to get into the politics side of the thing, but I do think that there is a need for us to provide our customers with a diverse supply,” Zhang said, adding that Europe is a “very significant geography given the customer base ... [and] the demand.” Zhang did not confirm the size of subsidy or cost of the potential project or
RSS