Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) could have difficulty getting its hands on a NT$15.8 billion (US$481.3 million) loan from US investment bank Lehman Brothers given government concerns that it may involve funds from China.
"We have followed the rules in applying for the loan ... We can only wait for the government's final decision," THSRC spokesman Arthur Chiang (
THSRC, the operator of the nation's high speed rail, secured a NT$65.5 billion syndicated loan from Lehman Brothers and seven local banks, including Taipei Fubon Bank (台北富邦銀行), Taishin International Bank (台新銀行) and Fuhwa Commercial Bank (復華銀行), in May.
Of the total, Lehman Brothers will provide NT$15.8 billion, with THSRC using the right to develop five major stations -- Taoyuan, Hsinchu, Taichung, Chiayi and Tainan -- for 50 years as collateral for the loan.
As Lehman Brothers and IBM Corp had established a China Investment Fund with an initial capitalization of US$180 million last October, some Taiwanese officials have voiced concerns that the loan might involve Chinese funds, allowing China to control the right to develop THSRC stations, the Chinese-language China Times reported yesterday.
Chinese investments are banned in Taiwan.
The Ministry of Transportation and Communications has yet to make a decision on the case, the report said.
Despite the snag, operations at the high-speed rail remained normal, it added.
"We are still alive," Chiang said.
THSRC chairwoman Nita Ing (殷琪) said during a ceremony last month to announce the syndicated loan agreement that she hoped the company would break even in the third quarter.
The bullet train system posted revenues of NT$1.03 billion and NT$1.15 billion in April and May respectively. Chiang refused to reveal sales for last month, saying THSRC was only required to report the figure to the Bureau of Taiwan High Speed Rail.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
RSS