TAIEX falls on correction
The TAIEX yesterday moved lower on a technical correction from a session earlier, when the main board hit a historic high amid ample liquidity, dealers said, adding that there was also caution over an upcoming earnings report. Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led the downturn, as investors showed caution ahead of an investors’ conference due to open after the market closed, while iPhone assembler Hon Hai Precision Industry Co (鴻海精密) posted gains, preventing the broader market from falling further, dealers said. The TAIEX ended down 62.79 points, or 0.4 percent, at 15,707.19, on turnover of NT$388.541 billion (US$13.65 billion). TSMC fell 2.15 percent to close at NT$592, while Hon Hai rose 8.92 percent to end at NT$116. Foreign institutional investors sold a net NT$8.93 billion of shares yesterday after a net buy of NT$15.55 billion the day before.
Exchange warns of risks
The Taiwan Stock Exchange yesterday said investors buying exchange-traded fund (ETF) products should pay close attention to changes in market conditions and related risks, as local investors have a growing appetite for ETF products. The warning came as the exchange found some futures ETF products have been traded at premiums of more than 30 percent, but their net asset value (NAV) has continued to decline. “With large premiums to the NAV, investors might bear greater price risk as they buy the ETF at much higher prices than fair value,” the exchange said in a statement. “In addition, the futures ETF might face delisting if its NAV falls too low and reaches the contract termination threshold.” Among them, the average NAV of the Fubon S&P 500 VIX Short-term Futures ETF had reached NT$2.98 as of Monday, which implies a cumulative decline of 85.12 percent from its initial NAV of NT$20, the exchange said, adding that investors must beware of the NAV changes and delisting risk.
Kuaishou IPO approved
Kuaishou Technology (快手), the main rival to ByteDance Ltd (字節跳動), has received approval from the Hong Kong Stock Exchange for an initial public offering (IPO) of about US$5 billion, people familiar with the matter said, paving the way for one of the territory’s biggest listings of the year. The short video start-up, backed by Tencent Holdings Ltd (騰訊), plans to begin gauging demand for its IPO as soon as next week, one of the people said, asking not to be identified as the information had not yet been made public. Kuaishou is angling for a valuation of US$50 billion, almost twice that of a recent estimate, Bloomberg News reported. A Kuaishou representative had no immediate comment on the deal. Kuaishou, which means “fast hand” in Chinese, is set to win a race against larger rival ByteDance in going public. ByteDance, which owns the popular apps TikTok and Douyin (抖音), is in discussions to raise US$2 billion privately before listing some of its businesses in Hong Kong, Bloomberg News reported last year. At US$5 billion, Kuaishou’s IPO would be the territory’s biggest float since the Asian unit of Anheuser-Busch InBev SA raised US$5.8 billion in 2019, excluding the secondary listing of Alibaba Group Holding Ltd in the same year, data compiled by Bloomberg showed.
From India to China to the US, automakers cannot make vehicles — not that no one wants any, but because a more than US$450 billion industry for semiconductors got blindsided. How did both sides end up here? Over the past two weeks, automakers across the world have bemoaned the shortage of chips. Germany’s Audi, owned by Volkswagen AG, would delay making some of its high-end vehicles because of what chief executive officer Markus Duesmann called a “massive” shortfall in an interview with the Financial Times. The firm has furloughed more than 10,000 workers and reined in production. That is a further blow
MOBILE SMART: The Dimensity 1200 is 22 percent better in terms of performance than its predecessor, and 25 percent more power-efficient, the handset chip designer said MediaTek Inc (聯發科) yesterday unveiled its premium 5G processors — the Dimensity 1200 and Dimensity 1100 — as it vies for a larger slice of the world’s rapidly growing 5G smartphone market. Manufactured using Taiwan Semiconductor Manufacturing Co’s (台積電) 6-nanometer process technology, the Dimensity 1200 processor performs 22 percent better than the previous generation Dimensity 1000+ processor, and is 25 percent more power-efficient, MediaTek said. Chinese smartphone brands Xiaomi Corp (小米) and Realme Mobile Telecommunications (Shenzhen) Co (銳爾覓移動通信) are to be the first adopters of the latest Dimensity chips, the companies said during a virtual media briefing. Xiaomi plans to equip its first
Answering to a reported request by Germany to help address a chip shortage in its auto industry, the Ministry of Economic Affairs (MOEA) yesterday said that it was in talks with domestic chip suppliers. Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months. The MOEA said that it had not yet received the request and could therefore not elaborate
FOCUS ON FOUNDRIES: An analyst said that some investors would be disappointed because they were expecting a larger announcement of a partnership with TSMC Intel Corp’s incoming chief executive officer Pat Gelsinger on Thursday pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. “I am confident that the majority of our 2023 products will be manufactured internally,” Gelsinger said. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.” He plans to provide more details after officially taking over the CEO role on Feb. 15, but Gelsinger was clear that Intel is sticking with its once mighty