The high-speed motor and drone sectors would bear the brunt of Beijing’s newly announced rare earth export curbs, while the semiconductor industry is expected to be indirectly affected, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday.
China last week announced new restrictions requiring companies to obtain export licenses if their products contain more than 0.1 percent of Chinese-origin rare earth materials by value.
The effect on the semiconductor industry would likely be indirect, as local chipmakers do not purchase much directly from China, importing most rare earth materials from Japan and most equipment from the US, Kung told reporters on the sidelines of a meeting of the legislature’s Economics Committee.
Photo: Yang Yuan-ting, Taipei Times
The ministry is monitoring the impact the restrictions might have on the local chip supply chain and would propose countermeasures if needed, he said.
Beijing in April already imposed restrictions on some rare earths, making a price increase inevitable, but as they account for a relatively small share of global supply chain costs, the ministry would watch closely to see whether it leads to broader price hikes, Kung added.
Shares in Taiwan yesterday plunged, but recouped part of earlier losses as US President Donald Trump — who on Friday threatened to impose a 100 percent tariff on Chinese goods after Beijing’s rare earths announcement — adopted a more conciliatory stance on Sunday, easing investors’ jitters.
The TAIEX closed down 378.50 points, or 1.39 percent, at 26,923.42, with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock on the main board, falling 1.74 percent, while smartphone chip designer MediaTek Inc (聯發科) was down 2.23 percent.
“Bargain hunters emerged to pick large-cap electronics stocks, including TSMC as US stock futures rebounded, pointing to a possible higher opening on the spot market after Trump softened his tone,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “Many investors still have high hopes that the US and China are expected to sit down to resolve the trade issues.”
Nevertheless, China yesterday held its position, calling for Trump to withdraw his latest tariff threat and other export control measures announced over the weekend.
“China urges the US to promptly correct its erroneous practices,” Chinese Ministry of Foreign Affairs spokesman Lin Jian (林劍) said. “If the US insists on going its own way, China will certainly take resolute measures to safeguard its legitimate rights and interests.”
Economic indicators show that the retaliatory actions and uncertainty are affecting trade between the two countries. Chinese trade data released yesterday showed that exports to the US have fallen for six consecutive months, dropping 27 percent last month from a year earlier.
Additional reporting by CNA and AP
Taichung reported the steepest fall in completed home prices among the six special municipalities in the first quarter of this year, data compiled by Taiwan Realty Co (台灣房屋) showed yesterday. From January through last month, the average transaction price for completed homes in Taichung fell 8 percent from a year earlier to NT$299,000 (US$9,483) per ping (3.3m²), said Taiwan Realty, which compiled the data based on the government’s price registration platform. The decline could be attributed to many home buyers choosing relatively affordable used homes to live in themselves, instead of newly built homes in the city’s prime property market, Taiwan Realty
The government yesterday approved applications by Alphabet Inc’s Google to invest NT$27.08 billion (US$859.98 million) in Taiwan, the Ministry of Economic Affairs said in a statement. The Department of Investment Review approved two investments proposed by Google, with much of the funds to be used for data processing and electronic information supply services, as well as inventory procurement businesses in the semiconductor field, the ministry said. It marks the second consecutive year that Google has applied to increase its investment in Taiwan. Google plans to infuse NT$25.34 billion into Charter Investments Ltd (特許投資顧問) through its Singapore-based subsidiary Fructan Holdings Singapore Pte Ltd, and
JET JUICE: The war on Iran’s secondary effects have seen fuel prices skyrocket, knocking flight schedules down to earth in return as airlines struggle with costs Airline passengers should brace for more irritation in the next few months as carriers worldwide cancel flights and ground planes to cope with stratospheric increases in jet-fuel prices. Dutch flag carrier KLM is the latest company to cut its schedule, saying on Thursday that it would scrap 80 return flights at Amsterdam’s Schiphol Airport in the coming month. That puts it in the same league as United Airlines Holdings Inc, Deutsche Lufthansa AG and Cathay Pacific Airways Ltd, which have all pruned itineraries to mitigate costs. Global capacity for next month has been reduced by about 3 percentage points, with all
Micron Technology Inc is a driving force pushing the US Congress to pass legislation that would put new export restrictions on equipment its Chinese competitors use to make their chips, according to people familiar with the matter. A US House of Representatives panel yesterday was to vote on the “MATCH Act,” a bill designed to close gaps in restrictions on chipmaking equipment. It would also pressure foreign companies that sell equipment to Chinese chipmaking facilities to align with export curbs on US companies like Lam Research Corp and Applied Materials Inc. The bill targets facilities operated by China’s ChangXin Memory Technologies Inc
RSS