ECONOMY
GDP to increase 4%: council
Taiwan’s GDP is expected to grow 4 percent this year, the National Development Council said in a statement yesterday. The council predicted solid growth amid booming outbound shipments, a continuing global economic recovery, more resilient supply chains and the emergence of new technologies. It said that Taiwan’s exports could reach US$472.1 billion this year, up 6.14 percent from last year, and that private consumption would grow 5.36 percent this year. An investment program, which was launched in 2019 and late last year was extended to 2024, would help attract NT$900 billion (US$32.33 billion) in overseas Taiwanese capital back to the country and generate 40,000 job opportunities, the council said. However, several challenges still lie ahead for Taiwan this year, such as inflationary pressure, carbon reduction and the COVID-19 pandemic, the council said.
MANUFACTURING
Sinbon posts record revenue
Connector and cable assembly manufacturer Sinbon Electronics Co (信邦電子) yesterday reported record revenue of NT$2.35 billion for last month, an increase of 11.44 percent from a year earlier and up 8.32 percent from the previous month. The company attributed the results to increasing demand for its products used in the automotive industry, medical and care devices, and industrial applications. The firm’s consolidated revenue totaled NT$2.35 billion last month, surpassing its record of NT$2.25 billion in November last year, Sinbon said in a news release. Cable assemblies contributed to 72.33 percent of the company’s total sales last month, while connectors and other components and accessories made up 27.67 percent, the company said.
CHIP DESIGNERS
Faraday revenue tops NT$1bn
Faraday Technology Corp (智原), a fabless chip design service and silicon patent provider, yesterday said that its revenue for last month exceeded NT$1 billion for the first time in the company’s history, hitting a record high for the third month in a row. Consolidated revenue was NT$1.05 billion, up 12.55 percent month-on-month and 117.09 percent year-on-year, the company said in a statement. Faraday’s revenue mainly comes from its application-specific integrated circuit (ASIC) solutions, non-recurring engineering services and silicon intellectual property business. Last month’s growth momentum benefited mainly from new ASIC solution projects, which should carry into this quarter despite the first quarter of the year being the low season, analysts said.
TESTING SERVICES
Sporton revenue hits record
Sporton International Inc (耕興), which provides professional product testing and certification services, yesterday reported that its revenue continued to climb last month and was the highest in the company’s history. Consolidated revenue increased 1.9 percent month-on-month and rose 25.77 percent year-on-year to a record NT$420.1 million. The increase was due to robust product testing for different wearable devices, smart consumer electronics, telematics and remote healthcare systems that use 5G and Wi-Fi 6E technologies, analysts said. Sporton’s revenue for last year grew 22.94 percent year-on-year to NT$4.32 billion after revenue in the fourth quarter rose 18.11 percent to NT$1.11 billion, as markets continue to migrate to 5G technology, they said. The company would continue to post record revenues this year, buoyed by strong growth momentum, analysts said.
UNPRECEDENTED PACE: Micron Technology has announced plans to expand manufacturing capabilities with the acquisition of a new chip plant in Miaoli Micron Technology Inc unveiled a newly acquired chip plant in Miaoli County yesterday, as the company expands capacity to meet growing demand for advanced DRAM chips, including high-bandwidth memory chips amid the artificial intelligence boom. The plant in Miaoli County’s Tongluo Township (銅鑼), which Micron acquired from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion, is expected to make a sizeable capacity contribution to the company from fiscal 2028, the company said in a statement. It would be an extended production site of Micron’s large-scale manufacturing hub in Taichung, the company said. As the global semiconductor industry is racing to reach US$1 trillion
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
Memory chip stocks extended their losses yesterday after Alphabet Inc’s Google publicized research that could allow more efficient use of the storage needed for artificial intelligence (AI) development. SK Hynix Inc and Samsung Electronics Co, South Korean leaders in the market, fell more than 6 percent and about 5 percent respectively in Seoul. In the US, Micron Technology Inc, Western Digital Corp and Sandisk Corp slid more than 2 percent in pre-market trading, after they all closed lower on Wednesday. Memory companies have been on a tear in recent months as the rapid development of AI infrastructure triggered a spike in chip
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