JAPAN
PM releases extra budget
Prime Minister Fumio Kishida yesterday delivered his first extra budget, funding the nation’s biggest-ever fiscal package, as he tries to lay the groundwork for what he has billed as a new version of capitalism and secure an economic recovery before next year’s elections. Kishida’s Cabinet approved new spending of ￥36 trillion (US$316 billion) and the issuance of about ￥22 billion in new government bonds to pay for it, government documents showed, confirming earlier reports. More than ￥1 trillion in cash handouts for households with children, along with several trillion more for restaurants and other businesses hit by restrictions amid the COVID-19 pandemic are among the measures. Some analysts have questioned the need for so much spending now, given that Japan has lifted most restrictions.
INDONESIA
Jobs law rework ordered
A court ruling against a new jobs creation law could dim its investment outlook, experts said yesterday, in a potential blow to President Joko Widodo’s drive to boost investment and reduce the economy’s reliance on consumption. The Constitutional Court on Thursday ordered the government to amend the legislation within two years, citing procedural flaws in its handling. The government said it would comply. Jakarta had touted the law to try to lure foreign investors, citing related structural changes that have seen measures introduced to relax labor rules, reduce red tape and speed up permitting. “It cannot be ruled out that some investment decisions or corporate actions could be delayed as legal experts dissect the implications of this court ruling,” Citibank economist Helmi Arman said in a client note.
AUTOMAKERS
British output falls
British vehicle output fell by an annual 41.4 percent last month to its lowest October level since 1956 as the global lack of semiconductor chips and a plant closure hit the sector, data from the Society of Motor Manufacturers and Traders showed on Friday. A total of 64,729 vehicles rolled off British production lines, the data showed. The fall reflected the global supply chain problems and Honda’s permanent closure of its factory in late July. Output in the first 10 months of the year stood at 721,505 vehicles, down 2.9 percent from the same period last year, when sites were closed for months amid COVID-19 restrictions. Full-year car and van output is projected to be below 1 million for a second consecutive year, but is expected to return to above that level next year, the trade industry body said, citing an independent forecast by AutoAnalysis.
ITALY
Apple and Google fined
The Italian Competition Authority imposed 20 million euros (US$22.5 million) in fines on Apple and Google yesterday. The agency said that it fined Apple and Google 10 million euros each for contravening the consumer code, including failing to provide enough information to customers and resorting to “aggressive methods” in the use of their data for commercial ends. “Neither Apple nor Google provided clear and immediate information on the acquisition and use of user data for commercial ends,” the agency said in a statement. The regulator imposed a 200 million euro fine on Apple and Amazon.com Inc earlier this week. Meanwhile, EU member states on Thursday agreed their common position on two pieces of legislation that could set unprecedented oversight on Big Tech.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Gudeng Precision Industrial Co (家登精密), the sole extreme ultraviolet pod supplier to Taiwan Semiconductor Manufacturing Co (台積電), yesterday said it has trimmed its revenue growth target for this year as US tariffs are likely to depress customer demand and weigh on the whole supply chain. Gudeng’s remarks came after the US on Monday notified 14 countries, including Japan and South Korea, of new tariff rates that are set to take effect on Aug. 1. Taiwan is still negotiating for a rate lower than the 32 percent “reciprocal” tariffs announced by the US in April, which it later postponed to today. The
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
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