SOUTH KOREA
New aid package unveiled
The government yesterday unveiled a 9.3 trillion won (US$8.5 billion) package to support small businesses hit by a third wave of COVID-19 cases and those vulnerable to unemployment. The Ministry of Finance said that 5.6 trillion won is to be used to fund cash handouts to small businesses, temporary or freelance workers, and taxi drivers affected by the pandemic. About 2.9 trillion won is to be used to support medium-sized businesses, and to keep more people in jobs. Consumer confidence this month weakened sharply from a 10-month high as a resurgence of the pandemic led to tighter restrictions on activity. The Bank of Korea’s consumer sentiment index this month slid to 89.8, its lowest reading in three months, the central bank said in a statement. The biggest declines were seen in sub-indices measuring the outlook for household spending and an assessment of the economy.
UNITED STATES
Drones to fly at night
Small drones are to be allowed to fly over people and at night, the Federal Aviation Administration (FAA) said on Monday, a significant step toward their use for widespread commercial deliveries. The FAA said that its long-awaited rules for drones would address security concerns by requiring remote identification technology in most cases to enable their identification from the ground. Previously, small drone operations over people were limited to operations over those who were directly participating in the operation, under a covered structure or inside a stationary vehicle — unless operators had obtained a waiver from the FAA. The new rules “get us closer to the day when we will more routinely see drone operations such as the delivery of packages,” FAA Administrator Steve Dickson said.
AUSTRALIA
Billionaires get richer
The combined wealth of the nation’s billionaires has risen by more than 50 percent over the past year, new data showed, prompting concerns that a COVID-19 pandemic-triggered recession had “turbocharged” the gap between rich and poor. The combined net worth of the nation’s billionaires dropped in March — when COVID-19 restrictions were tightened — before rebounding strongly and increasing throughout the rest of the year, the Bloomberg Billionaires Index showed. The combined worth of the billionaires was assessed to be 52.4 percent higher this week than at the same time in December last year. By comparison, billionaires in the US and UK recorded an increase of about 25 percent over the same period.
SOFTWARE
Qualtrics files for IPO
Qualtrics International Inc filed for what could be one of the first US initial public offerings (IPOs) of next year, just more than two years after it was acquired by German software giant SAP SE. The company, which makes customer-survey software, said in a filing on Monday that it plans to sell an undetermined number of shares for US$20 to US$24 each. Its paperwork with the US Securities and Exchange Commission listed a placeholder amount of US$100 million, which would likely change once it sets the amount of stock that it plans to market. At the top end of that range, the IPO would value Qualtrics at about US$14.4 billion on a fully diluted basis, based on about 600 million shares being issued after the listing. Qualtrics cofounder and former chief executive Ryan Smith agreed on Dec. 8 to buy 6 million shares for US$20 per share, the filing showed.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective