■ Semiconductors
Chip glut contracts
Global semiconductor oversupply contracted more than expected in the fourth quarter as chipmakers cut surplus stockpiles that had bloated to a two-year high, market researcher ISuppli Corp said. The glut, defined as the excess inventory relative to historical averages for each quarter, fell 38 percent to US$1 billion in the fourth quarter, compared with a two-year high of US$1.6 billion in the third quarter, ISuppli said, citing a preliminary tally. ISuppli had projected excess inventory in the fourth quarter of US$1.5 billion. As growth in chip sales is forecast to slow this year, excess inventory will continue to be a concern and the industry should be on "yellow alert," according to ISuppli. STMicroelectronics NV and Royal Philips Electronics NV, Europe's largest chipmakers, yesterday forecast that sales and profit from microchips will drop this quarter. Global chip sales may shrink this year for the first time since 2001, according to researcher IC Insights Inc.
■ Mobile Phones
NTT DoCoMo profit rises
Japan's top mobile-phone operator NTT DoCoMo yesterday said a discount war hurt revenue but the December quarter's net profit still rose more than 50 percent owing to gains on the sale of its AT&T Wireless stake. The net profit rose 53.1 percent to ?756.54 billion (US$7.3 billion) in its third quarter on the back of a gain of ?501.78 billion from the sale of its 16 percent stake in AT&T Wireless, NTT DoCoMo said. The pretax profit rose by 49.5 percent to ?1.25 trillion. The operating profit fell 10.9 percent to ?751.35 billion on sales of ?3.64 trillion, down 4.8 percent from a year earlier, after being hit by deeper family discounts and free e-mail services. Japan will allow subscribers to switch carriers without changing phone numbers next year, which is posing a challenge, company president and chief executive officer Masao Nakamura said.
■ Breweries
Molson merger vote held
Shareholders of Canada's Molson brewery were to vote yesterday on a merger with US-based Coors, a potential tie-up which would create the world's fifth largest beermaker. A majority is needed among shareholders of the family-owned Molson brewery when they gather at a Montreal hotel to vote. The two firms are steeped in brewing history, with Molson, founded in 1786, as Canada's oldest brewer, while Coors dates its founding back to 1873. The merger is expected to generate annual savings of US$175 million by 2007. The deal would create a company to be named Molson Coors Brewing Co, which would be the world's fifth biggest brewer by volume.
■ Taxes
US pressured to cut rates
European nations have been lowering corporate-tax rates as they compete for foreign investment, pressuring the US for similar cuts, the Wall Street Journal said, citing John Breaux, a former Democratic senator from Louisiana on a White House-backed tax-reform panel. Ireland cut its rate to 12.5 percent from 24 percent between 2000 and 2003, prompting European countries to make similar changes, the newspaper said. This month, the Netherlands lowered its corporate-tax rate by three percentage points to 31.5 percent, Portugal has dropped its rates about 10 points to 27 percent, and Austria lowered its rates about nine points to 25 percent. The changes are prompting US companies to expand in Europe rather than at home, the paper said.
Nvidia Corp yesterday unveiled its new high-speed interconnect technology, NVLink Fusion, with Taiwanese application-specific IC (ASIC) designers Alchip Technologies Ltd (世芯) and MediaTek Inc (聯發科) among the first to adopt the technology to help build semi-custom artificial intelligence (AI) infrastructure for hyperscalers. Nvidia has opened its technology to outside users, as hyperscalers and cloud service providers are building their own cost-effective AI chips, or accelerators, used in AI servers by leveraging ASIC firms’ designing capabilities to reduce their dependence on Nvidia. Previously, NVLink technology was only available for Nvidia’s own AI platform. “NVLink Fusion opens Nvidia’s AI platform and rich ecosystem for
‘WORLD’S LOSS’: Taiwan’s exclusion robs the world of the benefits it could get from one of the foremost practitioners of disease prevention and public health, Minister Chiu said Taiwan should be allowed to join the World Health Assembly (WHA) as an irreplaceable contributor to global health and disease prevention efforts, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said yesterday. He made the comment at a news conference in Taipei, hours before a Taiwanese delegation was to depart for Geneva, Switzerland, seeking to meet with foreign representatives for a bilateral meeting on the sidelines of the WHA, the WHO’s annual decisionmaking meeting, which would be held from Monday next week to May 27. As of yesterday, Taiwan had yet to receive an invitation. Taiwan has much to offer to the international community’s
CAUSE AND EFFECT: China’s policies prompted the US to increase its presence in the Indo-Pacific, and Beijing should consider if this outcome is in its best interests, Lai said China has been escalating its military and political pressure on Taiwan for many years, but should reflect on this strategy and think about what is really in its best interest, President William Lai (賴清德) said. Lai made the remark in a YouTube interview with Mindi World News that was broadcast on Saturday, ahead of the first anniversary of his presidential inauguration tomorrow. The US has clearly stated that China is its biggest challenge and threat, with US President Donald Trump and US Secretary of Defense Pete Hegseth repeatedly saying that the US should increase its forces in the Indo-Pacific region
ALL TOGETHER: Only by including Taiwan can the WHA fully exemplify its commitment to ‘One World for Health,’ the representative offices of eight nations in Taiwan said The representative offices in Taiwan of eight nations yesterday issued a joint statement reiterating their support for Taiwan’s meaningful engagement with the WHO and for Taipei’s participation as an observer at the World Health Assembly (WHA). The joint statement came as Taiwan has not received an invitation to this year’s WHA, which started yesterday and runs until Tuesday next week. This year’s meeting of the decisionmaking body of the WHO in Geneva, Switzerland, would be the ninth consecutive year Taiwan has been excluded. The eight offices, which reaffirmed their support for Taiwan, are the British Office Taipei, the Australian Office Taipei, the
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