TAIEX moves sharply higher
The TAIEX moved sharply higher yesterday as buying focused on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) after a strong showing by its American Depositary Receipts overnight. However, the gains were capped after the benchmark index breached 13,000 points and ran into technical hurdles, prompting investors to turn cautious, dealers said. At the end of the session, the TAIEX was up 131.11 points, or 1.02 percent, at 12,976.76. Turnover was NT$206.328 billion (US$7.04 billion), with foreign institutional investors buying a net NT$18.47 billion in shares, Taiwan Stock Exchange data showed. TSMC rose 2.92 percent to close at NT$458. Its gains alone contributed to a more than 100-point increase in TAIEX.
Apple Watch sales set
Chunghwa Telecom Co (中華電信) yesterday said it is to sell Apple Inc’s latest Apple Watch Series 6 and Apple Watch SE from Tuesday next week at selected stores and on its Web site. Chunghwa Telecom said it is accepting subscriptions for a separate Apple Watch phone number, allowing people to use a Watch product without an iPhone. With a separate number, subscribers woud have access to Apple’s new “Family Setup” services, allowing family members who do not own an iPhone to use an Apple Watch, Chunghwa Telecom said. Far EasTone Telecommunications Co (遠傳電信) said is also is to begin selling the new Apple Watches the same day.
Pan German sets IPO date
Pan German Universal Motors Ltd (汎德永業汽車), which distributes BMW, Porsche and Mini vehicles in Taiwan, yesterday said it plans to debut on the Taiwan Stock Exchange on Oct. 12. To prepare for the initial public offering (IPO), Pan German said it is planning a rights issue to improve its working capital. It plans to issue 8.968 million new shares, with 6.457 million shares open for public auction beginning today with a floor price of NT$168.22, the company said in a statement. The results of the auction would be announced on Wednesday next week, it said.
Yuan deposits fall 2.12%
Yuan deposits held by local banks last month fell 2.12 percent to 235.88 billion yuan (US$34.9 billion) from the previous month, as companies and individuals withdrew the Chinese currency to settle trade deals or invest in international bonds, the central bank said on Tuesday. Last month’s figure fell for the third month in a row and hit the lowest in six-and-a-half years, even though the yuan continued to rise against the US dollar, central bank data showed. Yuan deposits at domestic banking units fell 1.19 percent to 206.743 billion yuan last month, while those at offshore units dropped 8.26 percent to 29.137 billion yuan, the central bank said.
Li Ka-shing makes donation
The charity of the territory’s richest tycoon, Li Ka-shing (李嘉誠), is to donate HK$170 million (US$22 million) to four local universities. The funds are to help establish biochemistry, biomedical and sustainable technology research facilities, as well as for artificial intelligence learning and teaching solutions, the Li Ka Shing Foundation said in a statement yesterday. Li made the donation “to advance education excellence amidst uncertainties,” the foundation said in the statement.
MOMENTUM: While next-generation smartphones feature more semiconductors and vendors increase their inventory, the chipmaker remains focused on production in Taiwan Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the sole chip supplier for Apple Inc’s iPhone series, yesterday raised its revenue forecast again, saying that robust demand for 5G smartphones and high-performance-computing (HPC) would help boost revenue this year by 30 percent in US dollar terms. Three months ago, the chipmaker estimated that revenue would grow 20 percent this year from last year, reaching its long-term growth target of 15 to 20 percent annually. “Moving into the fourth quarter, we expect our growth in revenue to be supported by strong demand for our industry-leading 5-nanometer technology driven by 5G smartphone launches and HPC-related applications,”
WIN-WIN SITUATION: Customers, products and client portfolios of the companies are complementary, allowing for inroads into new fields, Chipbond’s chairman said Chipbond Technology Corp (頎邦) yesterday said it plans to acquire about a 31 percent stake in Orient Semiconductor Electronics Ltd (華泰電子) in a cash-and-share deal, aiming to make inroads into flash memory-chip packaging. Chipbond said the strategic alliance would open the door for the company to enter the flash memorychip packaging and testing market, which is a new business for the Hsinchu-based company. Chipbond primarily provides testing and packaging services for driver integrated circuits that are used in flat panels. BUSINESS OPPORTUNITY “Except for flash memory chips, we also saw a lot of new businesses that require the technologies of Chipbond or Oriental
India’s COVID-19 economic gloom turned into despair this week, on news that its per capita GDP for this year might be lower than that of Bangladesh. “Any emerging economy doing well is good news,” Kaushik Basu, a former World Bank chief economist, said on Twitter after the IMF updated its World Economic Outlook. “But it’s shocking that India, which had a lead of 25% five years ago, is now trailing.” Ever since it began opening up the economy in the 1990s, India’s dream has been to emulate China’s rapid expansion. After three decades of persevering with that campaign, slipping behind Bangladesh hurts
BROADER STANCE: While growth in its core consumer electronics assembly business is decreasing, the manufacturing giant aims at a 10 percent gross margin Hon Hai Precision Industry Co (鴻海精密) said it aims to secure a 10 percent share of the world’s electric vehicle market by 2025, with about 3 million vehicles potentially using its platform. The electronics giant yesterday unveiled the plan to expand its nascent automobile business, saying that it seeks to offset slowing growth in its core consumer electronics assembly business. The company also outlined plans to release a solid-state battery by 2024 that could potentially displace the more commonly used lithium-ion batteries in electric vehicles. Hon Hai plans to achieve its ambitious target by making its software and hardware platforms “open,” Hon Hai