ENERGY
Power use rises 4.5 percent
As domestic companies expanded production to meet global demand and people gradually changed their lifestyles amid the COVID-19 pandemic, Taiwan’s energy consumption increased 4.5 percent last year from 2020, the Ministry of Economic Affairs said yesterday. Energy consumption in the industrial sector increased 8.5 percent from a year earlier due to increased economic activities; it decreased 5.2 percent in the transportation sector as people avoided going out to comply with social distancing measures; it rose 2.6 percent in the residential sector as people spent more time at home; and it fell 1.4 percent in the service sector due to the government’s COVID-19 restrictions, the ministry said in a statement.
TELECOMS
Taiwan Mobile optimistic
Telecom operator Taiwan Mobile Co (台灣大哥大) yesterday told investors that revenue this year would expand 15 to 17 percent from NT$15.61 billion (US$559.9 million) last year, mainly driven by its e-commerce subsidiary Momo.com Inc (富邦媒體). Taiwan Mobile said its mobile service revenue is projected to rise 3 to 5 percent year-on-year, after returning to growth last year, as 5G subscribers propped up the average revenue per user, helping to drive up revenue 4 percent annually. This year, Taiwan Mobile has set aside NT$11.2 billion for capital spending, with NT$6.43 billion to go toward its telecom business, it said. However, it would reduce spending on 5G-related buildup this year after it reached its peak last year, the company said. The company’s projection does not factor in its proposal to merge with local peer Taiwan Star Telecom Corp (台灣之星).
ELECTRONICS
Luxshare plans share sale
Apple Inc supplier Luxshare Precision Industry Co (立訊精密) is seeking to raise up to 13.5 billion yuan (US$2.13 billion) through a private share placement to fund a series of projects from intelligent wearable device manufacturing upgrades to electric vehicle component production. The Shenzhen, China-listed company plans to issue up to 2.1 billion shares to as many as 35 investors, including mutual funds, securities firms, trusts, finance companies, insurers and select foreign institutional investors, it said in an exchange filing. The firm aims to spend 6.2 billion yuan of the proceeds to construct or upgrade facilities and technology related to the production of intelligent wearable devices, and about 2 billion yuan on the production of electric vehicle components, the statement said. About 3.55 billion yuan of the proceeds would be used to supplement working capital, it added.
TRANSPORTATION
NDC approves light-rail plan
The National Development Council (NDC) has approved a feasibility study for the construction of a light-rail line linking Wugu (五股), Lujhou (蘆州) and Taishan (泰山) districts in New Taipei City, the city’s Department of Rapid Transit Systems (DORTS) said on Monday. The study would need to be approved by the Cabinet before New Taipei City can proceed with the next steps, which include an environmental impact assessment that would take three years, DORTS said. If construction on the 11.61km line goes ahead, it is estimated to cost NT$22.78 billion and could take about six years to complete, the department said. Construction of the project could be completed by 2030, the New Taipei City government has said, adding that it is designed to alleviate the traffic congestion that plagues the areas during rush hour.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
UNCERTAINTY: Investors remain worried that trade negotiations with Washington could go poorly, given Trump’s inconsistency on tariffs in his second term, experts said The consumer confidence index this month fell for a ninth consecutive month to its lowest level in 13 months, as global trade uncertainties and tariff risks cloud Taiwan’s economic outlook, a survey released yesterday by National Central University found. The biggest decline came from the timing for stock investments, which plunged 11.82 points to 26.82, underscoring bleak investor confidence, it said. “Although the TAIEX reclaimed the 21,000-point mark after the US and China agreed to bury the hatchet for 90 days, investors remain worried that the situation would turn sour later,” said Dachrahn Wu (吳大任), director of the university’s Research Center for
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