The Ministry of Economic Affairs last week approved applications from 13 companies to invest a combined NT$6 billion (US$203.31 million) through government incentive programs.
The ministry has so far approved 615 applications from Taiwanese businesses to invest a total of NT$1.083 trillion through three government incentive programs launched early last year, it said in a statement on Friday.
Another 58 companies are awaiting approval to invest, the ministry added.
The ministry’s InvesTaiwan Service Center last week approved Unikorn Semiconductor Corp’s (晶成半導體) application to invest NT$1 billion in its factory in the Hsinchu Science Park (新竹科學園區), it said.
The company, a foundry spinoff of LED chipmaker Epistar Corp (晶元光電), focuses mainly on III-V compound semiconductors — compounds made using elements listed in columns III and V of the periodic table — with businesses dedicated to epitaxy, and wafer and chip processing.
Given the rising demand for III-V compound semiconductors in facial recognition technology in smartphones and in 5G deployment, Unikorn plans to continue its investment in automation and testing equipment at the factory, the ministry said.
Malico Inc (太業科技), a supplier of thermal solutions, is to invest NT$900 million to establish a new plant in Taoyuan’s Yangmei District (楊梅) as new energy, 5G, electric vehicle and semiconductor equipment become key development industries, the ministry said.
Ain Tec Industrial Co Ltd (建興安泰工業), which produces shock absorber components for bicycles, motorcycles and yachts, also plans to invest NT$900 million to construct a new plant in Changhua, the ministry said.
Hwa Yuan Foods Co Ltd (華元食品), a supplier of snacks, potato chips and crackers, plans to invest NT$400 million to build a new plant in Taichung’s Wuci District (梧棲), and Shan Mai Food Co Ltd (先麥食品), known for its taro cakes, has also pledged to invest NT$400 million in establishing a new factory in Nantou Wanglai Industrial Park (南投旺來產業園區), the ministry said.
Other companies that the ministry last week approved to join the incentive programs include Soontai Tech Co Ltd (順泰電子), GLT Optical Inc (茂林光學), Elite Secret Biotechnology Corp (伊莉特生物科技), Rong Sheng Mechanical Engineering Co Ltd (榮聖機械) and Hwaguo Electrical Machinery Co Ltd (華谷電機).
The incentive programs provide participating companies with assistance for financing, taxation, land, utilities and labor, and pledged investments so far are estimated to create 90,630 jobs, the ministry said.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
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