ASE Technology Holding Co (ASE, 日月光投控) is planning to invest about NT$2.36 billion (US$85.19 million) in new production facilities to expand its advanced chip testing and packaging capacity in Kaohsiung, the company said yesterday.
“To facilitate our Kaohsiung plant’s production expansion, ASE decided to purchase several buildings from Hung Ching Development & Construction Co Ltd [宏璟建設],” ASE chief financial officer Joseph Tung (董宏思) told a virtual media briefing.
That includes a 12-floor building with a floor space of 19,056.13 ping (62,885m2) and a warehouse, both in Kaohsiung’s Nanzih District (楠梓), Tung said.
To satisfy customer demand, ASE this year plans to expand capital expenditure by 10 to 15 percent from last year.
In April, the company said that most of its chip testing and packaging product lines were running at full capacity, while many of its customers have signed long-term agreements amid an industry-wide supply-demand imbalance.
Revenue at ASE last month increased 18.1 percent to NT$42.27 billion, compared with NT$35.79 billion in May last year. On a monthly basis, revenue increased 2.3 percent from NT$41.33 billion.
For the first five months of this year, revenue expanded 20.55 percent to NT$203.07 billion from NT$168.45 billion in the same period last year, the company said, reiterating that it is seeking revenue growth for every quarter this year.
Separately, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, reported year-on-year revenue growth for last month of 19.8 percent to NT$112.36 billion from NT$93.82 billion in May last year.
On a monthly basis, revenue grew 0.9 percent from NT$111.32 billion in April.
Revenue in the January-to-May period was NT$586.09 billion, up 17.1 percent from NT$500.42 billion a year earlier, TSMC said.
Mobile phone chip supplier MediaTek Inc (聯發科) posted a year-on-year revenue surge of 89.76 percent from May last year and 13 percent month-on-month to NT$41.33 billion last month.
Revenue in the first five months soared 80.19 percent to NT$185.93 billion from NT$103.19 billion, the company 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.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
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