Shares of Taiwanese and South Korean solar power equipment makers rose after the US approved incentives for the industry and South Korea said it planned investments in solar energy.
Motech Industries Inc (茂迪), the nation’s biggest solar-cell maker by market value, rose 6.9 percent to close at NT$170 (US$5.30), a two-week high. E-ton Solar Tech Co (益通光能), the third-largest, gained 6.8 percent to NT$244.5 in Taipei, the highest since Sept. 11.
DC Chemical Co, the No. 2 polysilicon maker in Asia, advanced 6.6 percent to 332,500 won (US$287) in Seoul, the highest close since Aug. 18.
The US Senate yesterday passed a US$17 billion energy tax measure that gives a boost to the solar-power industry and extends tax credits for wind and refineries that process heavy oil.
South Korea plans to spend 99.4 trillion won by 2013 on 22 industries including energy and technology, the government said on Monday.
“The US energy bill helped lift solar stocks,” said Hsieh Chang-yo, analyst at Capital Securities Corp (群益證券), who has a “buy” rating on Motech and E-ton. “The legislation will increase demand for solar energy.”
MORE JOBS
First Solar Inc, Suntech Power Holdings Co (尚德), SunPower Corp and other companies would create 441,000 permanent jobs and inject US$232 billion in new spending into the economy by 2016 because of the US tax credits, according to a study commissioned by Resch’s group. DC Chemical supplies polysilicon to Suntech.
This week’s announcement from the South Korean government followed President Lee Myung-bak’s pledge on Aug. 15 to seek “low carbon, green growth,” referring to sustainable energy use to help reduce greenhouse gas emissions and environmental pollution.
DC Chemical gained for the fourth day, its longest winning streak since July.
The polysilicon it produces is the most expensive component used in solar panels.
“The government’s plan reignited investors’ interest in DC Chemical, which had been battered in the wake of global financial turmoil,” said Kim Young-jin, an analyst at KB Investment & Securities Co.
PRICE SLUMP
The stock slumped 11 percent on Tuesday last week as mounting credit losses and a surge in banks’ borrowing costs prompted investors to sell riskier assets in emerging markets. It has since gained 22 percent.
The advance in solar-equipment makers also followed gains in oil prices, which helps to make producing power from the sun cost effective. Crude has gained 17 percent since Tuesday last week on speculation the US government’s proposed rescue plan for the finance industry will spur demand.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday obtained the government’s approval to inject an additional US$7.5 billion into its US subsidiary, the Department of Investment Review said in a statement. The department approved TSMC’s application of investing in TSMC Arizona Corp, which is engaged in the manufacturing, sales, testing and design of IC and other semiconductor devices, it said. The latest capital injection follows a US$5 billion investment for TSMC Arizona approved in June. The chipmaker has broken ground on two advanced fabs in Arizona with aggregated investments approved by the department totaling US$24 billion thus far. According to TSMC, the first Arizona
The lethal hack of Hezbollah’s Asian-branded pagers and walkie-talkies has sparked an intense search for the devices’ path, revealing a murky market for older technologies where buyers might have few assurances about what they are getting. While supply chains and distribution channels for higher-margin and newer products are tightly managed, that is not the case for older electronics from Asia where counterfeiting, surplus inventories and complex contract manufacturing deals can sometimes make it impossible to identify the source of a product, analysts and consultants say. The response from the companies at the center of the booby-trapped gadgets that killed 37
FRIENDLY TAKEOVER: While Qualcomm Inc’s proposal to buy some or all of Intel raises the prospect of other competitors, Broadcom Inc is staying on the sidelines Qualcomm Inc has approached Intel Corp to discuss a potential acquisition of the struggling chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever merger and acquisition deals. California-based Qualcomm proposed a friendly takeover for Intel in recent days, said the sources, who asked not to be identified discussing confidential information. The proposal is for all of the chipmaker, although Qualcomm has not ruled out buying some parts of Intel and selling off others. It is uncertain whether the initial approach would lead to an agreement and any deal is likely to come under close antitrust scrutiny
SECURITY CONCERNS: The proposed ban on Chinese autonomous vehicle software and hardware would go into effect with the 2027 and 2030 model years respectively The US Department of Commerce today is expected to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on US roads due to national security concerns, two sources said. US President Joe Biden’s administration has raised concerns about the collection of data by Chinese companies on US drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the Internet and navigation systems. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said the two sources, who declined to be identified because the