FINANCE
Minister at APEC meeting
Minister of Finance Su Jain-rong (蘇建榮) is attending the APEC finance ministers’ meeting in Bangkok, which started yesterday and ends tomorrow. Su is leading a delegation that includes Financial Supervisory Commission and central bank officials. It is the first time that Taiwan’s finance minister has attended the meeting in person since the COVID-19 pandemic began in early 2020, the Ministry of Finance said in a statement. He would be discussing the economic challenges facing global and regional economies, including sustainable finance and the adoption of digitalization, the statement said. A news conference is to be held following the meeting, it said.
SEMICONDUCTORS
Chang Wah predicts slump
Chang Wah Technology Co (長華科技), a supplier of semiconductor lead frames, yesterday said it expects the semiconductor industry’s weakness to persist this quarter. It estimated that its fourth-quarter revenue would be NT$3.09 billion to NT$3.25 billion (US$96.5 million to US$101.5 million), down 12 to 16 percent from last quarter’s NT$3.68 billion. Gross margin would be 28 to 30 percent this quarter, down from 31.5 percent last quarter, while operating margin would drop from 22.5 percent to 19.5 to 21.5 percent over the period, the firm told an investors’ conference in Taipei. Net profit rose 20 percent quarterly and 64 percent annually to NT$939 million last quarter, a quarterly record, Chang Wah said. In the first three quarters of the year, net profit increased 117 percent year-on-year to NT$2.43 billion, or earnings per share of NT$2.59, on revenue of NT$11.09 billion, up 22 percent annually, it said.
SEMICONDUCTORS
GUC posts record net profit
Chip designer Global Unichip Corp (GUC, 創意電子) on Tuesday reported a record net profit of NT$1.06 billion for last quarter, an increase of 39.2 percent from the previous quarter and 153.7 percent higher than a year earlier. Earnings per share were NT$7.9. Third-quarter revenue rose 12.7 percent quarterly and 69.1 percent annually to NT$6.06 billion, also a record. The growth in sales and profit was driven by the IC designer’s non-recurring engineering services and application-specific IC shipments, analysts said, adding that the firm is expected to maintain its strong momentum this quarter, despite new US export rules targeting China’s semiconductor industry. Global Unichip’s main customers are major international system manufacturers in the US, and its high-performance computing and artificial intelligence projects use Taiwan Semiconductor Manufacturing Co’s (台積電) advanced chip manufacturing process and packaging technologies, so the new US rules would have a limited impact on it, analysts said.
INSURANCE
Mercuries Life trims losses
Mercuries Life Insurance Co (三商美邦人壽保險) yesterday said it made a net profit of NT$1.06 billion last quarter on the back of first-year premium increases, helping pare its net losses in the first three quarters to NT$5.66 billion from losses of NT$6.72 billion at the end of the second quarter. Overall, the firm’s losses per share were NT$1.99 from January to September, it said in a statement. First-year premiums increased 260 percent year-on-year to NT$23.3 billion in the first three quarters, it said. As of the end of last month, the firms’ equity-to-assets ratio remained below the regulatory minimum of 3 percent, while total assets were NT$1.48 trillion, up 5.8 percent from the end of last year, it said.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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