Taiwan FamilyMart Co (全家便利商店), the operator of the nation’s second-largest convenience store chain, yesterday broke ground for a new multi-temperature logistics center in Hualien County’s Jian Township (吉安), which is expected to begin operations next year.
FamilyMart president Hsueh Dong-du (薛東都) said at the groundbreaking ceremony that the NT$560 million (US$18.78 million) investment would enhance the convenience store chain’s capacity in sorting and transshipping store merchandise and e-commerce packages.
It would also help improve the chain’s logistics distribution network and operational efficiency in the eastern part of Taiwan, he said in a press release by the Hualien County Government.
Photo courtesy of Taiwan FamilyMart Co
The COVID-19 pandemic has witnessed explosive growth in e-commerce and the frozen food business, and FamilyMart has responded by boosting investments in supply chain integration, logistics enhancement, information management and fresh food processing.
The new two-story logistics center in the Guanghua Industrial Park (光華工業區) will have a total floor space of 2,500 ping (8,260m2), the release said.
It will include processing facilities and warehouses for frozen and room temperature products, it added.
The center will be used mainly by FamilyMart’s logistics subsidiaries Taiwan Distribution Center Co (全台物流) and Re-Yi Distribution Service Co (日翊文化物流), the release said, adding that the investment is to meet the medium and long-term logistics needs in Hualien and Taitung counties.
The large warehousing space in the new logistics center would boost the capacity of the company’s distribution of goods for stores in eastern Taiwan by 40 percent, it said.
FamilyMart has two multi-temperature logistics centers — in Kaohsiung’s Gangshan District (岡山) and in New Taipei City’s Rueifang District (瑞芳) — and several satellite warehouses in Taoyuan and Tainan.
The company on Monday reported consolidated revenue of NT$7.27 billion for last month, up 3.3 percent from a year earlier, thanks to branch expansion and higher fresh food and beverage sales.
Revenue in the first four months of the year grew 1.4 percent annually to NT$28.26 billion, it said.
As of the end of last month, FamilyMart had 4,030 stores in Taiwan, up from 3,980 at the end of last year.
AI BOOST: Although Taiwan’s reliance on Chinese rare earth elements is limited, it could face indirect impacts from supply issues and price volatility, an economist said DBS Bank Ltd (星展銀行) has sharply raised its forecast for Taiwan’s economic growth this year to 5.6 percent, citing stronger-than-expected exports and investment linked to artificial intelligence (AI), as it said that the current momentum could peak soon. The acceleration of the global AI race has fueled a surge in Taiwan’s AI-related capital spending and exports of information and communications technology (ICT) products, which have been key drivers of growth this year. “We have revised our GDP forecast for Taiwan upward to 5.6 percent from 4 percent, an upgrade that mainly reflects stronger-than-expected AI-related exports and investment in the third
Mercuries Life Insurance Co (三商美邦人壽) shares surged to a seven-month high this week after local media reported that E.Sun Financial Holding Co (玉山金控) had outbid CTBC Financial Holding Co (中信金控) in the financially strained insurer’s ongoing sale process. Shares of the mid-sized life insurer climbed 5.8 percent this week to NT$6.72, extending a nearly 18 percent rally over the past month, as investors bet on the likelihood of an impending takeover. The final round of bidding closed on Thursday, marking a critical step in the 32-year-old insurer’s search for a buyer after years of struggling to meet capital adequacy requirements. Local media reports
TECHNOLOGICAL RIVALRY: The artificial intelligence chip competition among multiple players would likely intensify over the next two years, a Quanta official said Quanta Computer Inc (廣達), which makes servers and laptops on a contract basis, yesterday said its shipments of artificial intelligence (AI) servers powered by Nvidia Corp’s GB300 chips have increased steadily since last month, should surpass those of the GB200 models this quarter. The production of GB300 servers has gone much more smoothly than that of the GB200, with shipments projected to increase sharply next month, Quanta executive vice president Mike Yang (楊麒令) said on the sidelines of a technology forum in Taipei. While orders for GB200 servers gradually decrease, the production transition between the two server models has been
ASE Technology Holding Co (日月光投控), the world’s largest integrated circuit (IC) packaging and testing supplier, yesterday announced a strategic collaboration with Analog Devices Inc (ADI), coupled with the signing of a binding memorandum of understanding. Under the agreement, ASE intends to purchase 100 percent shares of Analog Devices Sdn Bhd and acquire its manufacturing facility in Penang, Malaysia, a press release showed. The ADI Penang facility is located in the prime industrial hub of Bayan Lepas, with an area of over 680,000 square feet, it said. In addition, the two sides intend to enter into a long-term supply agreement for ASE to