BANKING
LTV terms not retroactive
The central bank yesterday said that stricter loan-to-value (LTV) terms would not have a retroactive effect on loan applications that had already gained approval from local lenders, but were waiting for funds to be released. The central bank on Monday set LTV ratios at 50 to 60 percent for corporate and buyers of multiple homes respectively, effective the following day. No grace period is allowed. “A transition period is necessary to avoid confusion and disputes,” the central bank said. For loan applications filed prior to Monday, banks also can apply lenient terms with due caution to help maintain the health of the property market and the financial system, the central bank said. Some developers and investors reportedly have taken advantage of low interest rates to hoard land and houses, which led to property price hikes.
AUTO PARTS
SuperAlloy fined NT$10,000
The Taipei Exchange yesterday fined SuperAlloy Industrial Co (巧新) NT$10,000 (US$350.75) for failing to disclose the results of its chairperson selection before a deadline. The world’s second-largest forged wheel supplier at a board meeting on Nov. 24 elected Wei Lung-cheng (魏隆誠) as its new chairman, replacing Huang Tsung-jung (黃聰榮). However, the company was found to have delayed declaration of material information that need to be reported and announced, the exchange said, citing its rules. Separately, the exchange also fined Amita Technologies Inc (有量科技) NT$30,000 over the late disclosure of material information.
DISPLAYS
AUO, Innolux revenues rise
Revenue at AU Optronics Corp (AUO, 友達光電) and Innolux Corp (群創) last month rose 22 percent and 21.4 percent annually to NT$25.95 billion and NT$26 billion respectively, thanks to higher prices and shipments. The figures represented the second-highest monthly revenue for both companies this year. On a monthly basis, AUO’s revenue inched up 0.9 percent and that of Innolux increased 4.5 percent. The flat-panel makers said that prices of PCs and TVs would rise by a high-single-digit percentage this quarter from last quarter. AUO’s shipments of PC and TV panels last month rose 0.5 percent to 10.81 million units from a month earlier, while Innolux said shipments of large panels for PCs and TVs rose 1.9 percent month-on-month to 12.1 million units. In the first 11 months of this year, AUO’s revenue declined 2.4 percent annually to NT$242.1 billion, while Innolux’s revenue grew 5.65 percent annually to NT$242.9 billion.
TECHNOLOGY
Apple to roll out ECG app
Apple Inc yesterday announced that it would roll out its Apple Watch electrocardiogram (ECG) app in Taiwan next week, after the feature was approved by the Food and Drug Administration for use as a medical device. The app, which works on Apple Watch Series 4 and later models, is to be available in Taiwan from Tuesday next week on the iOS 14.3 and watchOS 7.2, Apple said in a statement on its Web site. The app, which was launched in 2018, records a user’s heartbeat and heart rhythm using an electrical sensor on later-generation Apple Watches, and checks the data for an irregular rhythm known as atrial fibrillation. The results of the test can be saved in a PDF, allowing them to be shared with a doctor. The app has been approved for use in 48 countries and regions, including Taiwan.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
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