MANUFACTURING
Optimax to sell factories
Optimax Technology Corp (力特光電), a supplier of polarizing films that are a central component of LCD technology, yesterday said that its board of directors has agreed to sell factories and equipment in the Southern Taiwan Science Park (南部科學園區) to Taiwan Semiconductor Manufacturing Co (台積電) for NT$3.65 billion (US$123.56 million). Optimax said it expects to book an asset disposal gain of NT$650 million after deducting expenses and plans to use the proceeds to repay bank loans. As of June 30, Optimax had about NT$6.2 billion in debts with 18 banks, a company financial statement showed.
NETWORKING
Accton results miss mark
Communications solutions provider Accton Technology Corp (智邦科技) yesterday reported weaker-than-expected financial results for the second quarter due to the COVID-19 pandemic. Net profit decreased 16 percent year-on-year to NT$1.16 billion, or earnings per share (EPS) of NT$2.07, Accton said in a statement. Revenue declined 8 percent from a year earlier to NT$12.63 billion last quarter. In the first half of the year, net profit rose 2.1 percent annually to NT$2.19 billion, or EPS of NT$3.93, while revenue fell 2.3 percent to NT$24.35 billion. The company also approved the appointment of Melody Chiang (江映慧) and Jackal Lee (李訓德) as senior vice presidents, effective immediately.
MANUFACTURING
Chelic reports NT$47m profit
Pneumatic parts maker Taiwan Chelic Corp Ltd (台灣氣立) yesterday reported better-than-expected net profit of NT$47.26 million for the second quarter, up 335.68 percent from a year earlier, or EPS of NT$0.71. Revenue increased 29.47 percent to NT$459 million, the company said in a statement. Gross margin improved to 35 percent last quarter, thanks to orders related to 5G devices, consumer electronics, automation equipment, machine tools and welding facilities, it said. Business in the second half of the year would be better than the first half on the back of strong demand for industrial automation products, the company said.
INTERNET
Mozilla to lay off workers
Mozilla Corp (MoCo), the developer of the Firefox Internet browser, is to lay off 250 people and restructure its organization, as the pandemic has affected its business. In a statement to employees, Mozilla chief executive officer Mitchell Baker said that the pandemic significantly affected the firm’s revenue and prompted the need to reduce the size of its workforce. “We are reducing the size of the MoCo workforce by approximately 250 roles, including closing our current operations in Taipei, Taiwan. Another 60 or so people will change teams,” Baker said.
FOOTWEAR
BASF opens center
German chemical firm BASF SE on Tuesday opened its first global Footwear Innovation Center in Taiwan, with the aim of allowing brands to optimize manufacturing processes and improve efficiency. The 650m2 center in Changhua County is in a compound belonging to BASF’s strategic partner Longterm Concept (隆鼎). BASF said in a news release that one of the goals of the center is to “bring footwear professionals, manufacturers and designers together to cocreate new-generation footwear.” The center would also feature a slew of interactive footwear exhibits and house a biomechanics lab for the development of new footwear solutions, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
LOOPHOLES: The move is to end a break that was aiding foreign producers without any similar benefit for US manufacturers, the US Department of Commerce said US President Donald Trump’s administration would make it harder for Samsung Electronics Co and SK Hynix Inc to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies’ production in the world’s largest semiconductor market. The US Department of Commerce in a notice published on Friday said that it was revoking waivers for Samsung and SK Hynix to use US technologies in their Chinese operations. The companies had been operating in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. The move would revise what is known
UNCERTAINTY: A final ruling against the president’s tariffs would upend his trade deals and force the government to content with billions of dollars in refunds The legal fight over US President Donald Trump’s global tariffs is deepening after a federal appeals court ruled the levies were issued illegally under an emergency law, extending the chaos in global trade. A 7-4 decision by a panel of judges on Friday was a major setback for Trump, even as it gives both sides something to boast about. The majority upheld a May ruling by the Court of International Trade that the tariffs were illegal. However, the judges left the levies intact while the case proceeds, as Trump had requested, and suggested that any injunction could potentially be narrowed to apply
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