SEMICONDUCTORS
Micron to cut executives’ pay
Micron Technology Inc is cutting executives’ salaries by as much as 20 percent and suspending bonuses as the chipmaker copes with a slump in the industry. Micron CEO Sanjay Mehrotra’s salary is to be reduced by one-fifth, with executive vice presidents getting a 15 percent cut, the firm said in a regulatory filing on Thursday. Senior vice presidents are to have their salaries reduced 10 percent, and bonuses would be suspended for all named executive officers. The move follows a plan to cut jobs at Micron by 10 percent. The Boise, Idaho-based company is contending with sluggish demand for memory chips as part of a slowdown in sales of personal computers and other devices. The move is to slash executives’ target cash compensation by 53 percent to 75 percent, Micron said. Mehrotra last year had a base salary of US$1.41 million, but most of his total US$28.8 million in compensation came from stock awards.
MALAYSIA
Pent-up demand boosts GDP
The economy grew at the quickest pace in more than two decades last year, as pent-up demand helped it become the fastest-growing economy in Asia, even if the title is likely to be short-lived. GDP rose 8.7 percent last year, the highest level since 2000, Department of Statistics data showed. That compares with the median estimate of 8.6 percent year-on-year growth in a Bloomberg survey and aligns with official expectations. Last quarter, the economy grew a better-than-expected 7 percent from a year earlier, helped by domestic demand. However, the data showed that the economy contracted 2.6 percent from the previous quarter — a performance that authorities attributed to waning support from stimulus measures.
SEMICONDUCTORS
AMD gains CPU market share
Advanced Micro Devices Inc (AMC) has captured nearly one-third of the market for CPUs, while British chip technology firm Arm Ltd’s rise in the PC market slowed last quarter, an analyst report said. AMD has grabbed share away from Intel Corp, which still remains the largest player in the market for what are known as x86 processors, which work with popular operating systems such as Microsoft Corp’s Windows. In the fourth quarter of last year, Intel had 68.7 percent market share for x86 processors, while AMD had 31.3 percent, up from 28.5 percent a year earlier, Mercury Research said. However, the PC chip market posted its worst downturn since the 1980s and possibly the worst in the industry’s history, Mercury Research president Dean McCarron said in the report.
TECHNOLOGY
PayPal growth loses steam
PayPal Holdings Inc’s volume growth on its platforms slowed even faster than expected in the final three months of last year, in yet another sign that consumer spending continued to stumble even during the normally busy holiday season. PayPal CEO Dan Schulman is planning to retire at the end of this year, the company said. Total payments volume climbed 9 percent to US$357.4 billion, missing the US$365.4 billion average estimate of 23 analysts compiled by Bloomberg. Still, the company has set its sights on trimming costs and said adjusted profit per share for last year would climb 18 percent to US$4.87, exceeding the US$4.75 analysts expect. Schulman has vowed to improve operating leverage, or the ability to grow revenue faster than expenses. On Thursday, PayPal said it would record US$100 million in charges tied to restructuring this quarter.
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
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,”
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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