BANKING
Yuan deposits rise
Yuan deposits at Taiwanese banks totaled 302.27 billion yuan (US$48.82 billion) at the end of last month, rising moderately from 300.6 billion yuan at the end of November, the central bank said yesterday. Last month’s yuan deposits included 247.11 billion yuan in savings accounts at 67 domestic banking units and 55.16 billion yuan in savings accounts at 59 offshore banking units, central bank data showed.
CHIP PACKAGERS
ASE to spin off unit
Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s biggest chip packager, yesterday said its board approved plans to spin off of its subsidiary, Universal Scientific Industrial Co Ltd (USI, 環電), as part of an effort to enhance operational flexibility via structural adjustments. USI’s board also yesterday passed the spin-off, as well as capital reduction proposals, which are to be submitted to a special shareholders’ meeting on Feb. 2. The spin-off and capital reduction are to take effect on March 6, ASE said in a statement.
TRADE
Exports tipped to grow
Exports are expected to grow 3.58 percent this year, following an annual increase of 2.75 percent last year, on the back of new production technology to secure more orders from foreign buyers, Taiwan External Trade Development Council (TAITRA) chairman Francis Liang (梁國新) said on Wednesday. To boost Taiwanese goods’ global visibility, TAITRA plans to hold 144 promotional campaigns this year, 13 more than last year, he said.
CHIPMAKERS
Ichia surges on sales report
Ichia Technologies Inc (毅嘉科技) shares rose by the daily maximum yesterday after it reported record-high sales and earnings for last year, while Yuanta Securities Investment Consulting Co (元大投顧) said the firm’s trademark “PEDLIM” technology for flexible printed circuit (FPC) manufacturing could help it land significant new orders this year. Sales grew 201 percent from 2013 to NT$11.23 billion (US$353.3 million) last year, while net profit expanded 190 percent to NT$1.07 billion, or NT$3.21 per share, Ichia said. Its shares closed at NT$33.45 yesterday. “Auto electronics, wearable devices and mobile devices will continue to drive FPC industry growth,” Yuanta wrote in a note. “The company may face challenges in the first quarter, but with improved sales to come in the second quarter.”
CHIP DESIGNERS
Himax faces slowdown
Himax Technologies Inc (奇景光電) might see its revenue for this quarter decline by single-digit percentage points from last quarter due to a seasonal slowdown, but gross margin could be flat from last quarter thanks to a better product mix, Credit Suisse AG said yesterday. Himax, which designs chips used in flat-panel displays, on Wednesday posted its results for last quarter, with revenue at US$227.2 million, a gross margin of 24.7 percent and earnings per share of US$0.087 to US$0.092.
"We think first-quarter sales will decline 4 percent quarter-on-quarter, better than normal seasonality of a 5-10 percent quarter-on-quarter drop, given strong smartphone demand from its [South] Korean customers," Credit Suisse wrote.
OPTICS
New shares issued
Ability Optoelectronics Technology Inc (先進光電) on Wednesday said it had raised NT$360 million in fresh funds by issuing 15 million new shares. That will increase the firm’s registered capital to NT$1.14 billion. The company, whose business focuses on optical lenses for mobile phones, notebook computers, camcorders and surveillance devices, plans to use the proceeds to boost working capital and repay bank loans.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San