Tingyi (Cayman Islands) Holding Corp (頂益控股), China's biggest instant noodle maker, and Uni-President Enterprises Co (統一企業), Taiwan's biggest, are extending their noodle war to Taiwan from China.
Tingyi, founded by brothers Wei Ing-chou and Wei Ying-chiao in northern China 10 years ago, said it will start making and selling its popular Master Kang (
The company's quest to grab a slice of a NT$10 billion (US$287 million) market that analysts say is already saturated won't be easy. There are five other major instant noodle makers in the local market.
"To complete our Greater China strategy, we have to enter the Taiwan market, even though it has negative or flat growth," Tingyi chief financial officer Frank Lin said in an interview.
"Based on the brand name, consumer curiosity and the product's quality and price, getting 10 percent should be simple," Lin said.
Taiwan's instant noodle war will be fought in supermarket aisles. Uni-President controls 3,000 7-Eleven stores, while Tingyi will rely mostly on the 70 supermarkets operated by family-run affiliate Wei Chuan Food Corp (味全食品).
"The competition will not be on the noodles, but on the distribution channels," said Richard Huang, who helps manage NT$8 billion of equities at Shinkong Investment Trust Co (新光投信).
Tingyi shares dropped HK$0.02, or 1 percent, to HK$1.96 at 11:41am in Hong Kong. Uni-President shares rose NT$0.15, or 1.3 percent, to NT$11.40. Wei Chuan shares rose NT$0.30, or 2.9 percent, to NT$10.80.
Tingyi's move to Taiwan may be a boost for Wei Chuan, in which the Wei family bought a controlling stake through its privately held Ting Hsin (Cayman Islands) Holding Corp in 1998.
Wei Chuan had posted five annual losses since 1996, though its shares surged 56 percent this month.
"After standing firm in China, Tingyi is helping its affiliate stand firm in Taiwan," said Lin Kuan-ho, who helps manage about NT$2.1 billion of stocks at First Global Investment Trust Co. (
"In terms of brand name, product range and distribution, Wei Chuan's organization is quite weak, compared to Uni-President."
Tingyi is leasing a factory from Wei Chuan to make instant noodles that it says will be attuned to local taste buds.
The noodles will be slightly blander than the saltier, oilier Master Kang version.
"A new entrant will definitely create pressure," said Lee Chin-shian, a spokesman for Ve Wong Corp, which earns 20 percent of its sales from instant noodles. "There will be competition on price and taste."
VALUABLE STOCK: The company closed at NT$1,005 a share, on demand for AI and HPC chips, and is expected to issue a positive report during its earnings conference Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares rose 2.66 percent to close at a record high of NT$1,005 yesterday. as investors expect the company to continue benefiting from strong demand for artificial intelligence (AI) and high-performance computing (HPC) chips. TSMC is the 19th member of the local bourse’s NT$1,000 stock club, which includes smartphone chip designer MediaTek Inc (聯發科) and electric transformer manufacturer Fortune Electric Co (華城電機). Yesterday’s rally swelled TSMC’s market capitalization to NT$26.06 trillion (US$802.3 billion) and contributed about 211 points to the TAIEX, which closed up 350.1 points, or 1.51 percent, to 23,522.53, another record high, Taiwan Stock
The waves of the Aegean Sea lap gently at the tables and chairs of two beach restaurants on Greece’s Halkidiki peninsula. It is an idyllic scene, but one that is totally illegal. Like many others in Greece, the two establishments on Pefkochori Beach do not have a license to set up shop so close to the water. After a wave of protests last summer by locals about bars and restaurants illegally covering beaches with sunbeds and tables, the Greek state is taking action. It is cracking down on rogue tourist practices with surveillance drones, satellite imagery and a special app
Luxgen Motor Co (納智捷汽車), a subsidiary of Yulon Motor Co (裕隆汽車), yesterday said it is again offering a NT$100,000 discount for its entry-level n7 electric vehicle models. The n7’s price has gone down from NT$1.099 million to NT$999,000, Luxgen said, adding that there are 25,000 preorders for the model. MG Motor’s electric hatchback, the MG4, entered the market in the middle of last month, with a starting price of NT$990,000. China Motor Corp (中華汽車), which distributes MG vehicles in Taiwan, said it aims to sell 1,600 MG4s this year. MG, originally a British brand, was acquired by China’s SAIC Motor
South Korea’s SK Hynix Inc, the world’s No. 2 memorychip maker, is to invest 103 trillion won (US$74.6 billion) through 2028 to strengthen its chips business, focusing on artificial intelligence (AI), its parent SK Group said yesterday. SK Group also said it plans to secure 80 trillion won by 2026 to invest in AI and semiconductors as well as fund shareholder returns, while streamlining its more than 175 subsidiaries. The sprawling conglomerate outlined the plans following a two-day strategy meeting, aiming to revive the group after SK Hynix, its main money maker, and the group’s electric vehicle battery arm suffered heavy losses. SK