Taiwanese technology stocks may benefit next year from new models and contracts to make products for other companies, helping to boost the benchmark TAIEX further, Macquarie Group Ltd said.
The companies may gain especially from “outsourcing” by Japanese customers and demand for third-generation mobile phone handsets, Macquarie said in a report yesterday.
“In the past few years, Taiwan has narrowed the technological and design capability gaps with Japan,” Macquarie analysts led by Daniel Chang (張博淇) said. “Taiwan has been building a solid and complete component supply chain.”
A measure of technology stocks on the MSCI Asia-Pacific excluding Japan index has jumped 64 percent this year on speculation that demand for computers and other electronics will increase as companies launch additional products and spending rebounds. That is better than the 42 percent gain in the regional benchmark index and is the best performer among 10 industry group.
Macquarie said increased outsourcing from Japan is a “mega trend” as many brand vendors are trying to contract out manufacturing to Taiwan to secure profitability.
Wistron Corp (緯創), the world’s third-largest maker of laptops and Altek Corp (華晶), a camera maker, will gain most from the subcontracting.
MediaTek Inc (聯發科), Taiwan’s largest chip designer, will be the “key beneficiary” as China telecommunications operators boost their capital expenditure spending to offer third-generation (3G) services.
Macquarie expects the replacement cycle for China 3G to start in 2011 and handset makers “that find favor with Chinese operators should enjoy a corresponding market share.”
Taiwanese technology companies will also gain because of new products next year, the research house said.
Acer Inc (宏碁) and Wistron may triumph on the introduction of Microsoft Corp’s new operating system, Windows 7, and contract makers such as Wintek Corp (勝華) and Largan Precision Co (大立光) may thrive on contracts to manufacture Apple’s iPhone and potential new products, the report said.
STIMULUS PLANS: An official said that China would increase funding from special treasury bonds and expand another program focused on key strategic sectors China is to sharply increase funding from ultra-long treasury bonds this year to spur business investment and consumer-boosting initiatives, a state planner official told a news conference yesterday, as Beijing cranks up fiscal stimulus to revitalize its faltering economy. Special treasury bonds would be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da (袁達), deputy secretary-general of the Chinese National Development and Reform Commission. “The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said. Under the program launched last year, consumers can
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
TRENDS: The bitcoin rally sparked by US president-elect Donald Trump’s victory has slowed down, partly due to outflows from exchange-traded funds for the token Gold is heading for one of its biggest annual gains this century, with a 27 percent advance that has been fueled by US monetary easing, sustained geopolitical risks and a wave of purchases by central banks. While bullion has ticked lower since US president-elect Donald Trump’s sweeping victory in last month’s election, its gains this year still outstrip most other commodities. Base metals have had a mixed year, while iron ore has tumbled, and lithium’s woes have deepened. The varied performances highlight the absence of a single, over-riding driver that has steered the complex’s fortunes, while also putting the spotlight
Ibiden Co, the dominant supplier of chip package substrates used in Nvidia Corp’s cutting-edge semiconductors, might need to dial up the pace of production capacity increases to keep up with demand, company CEO Koji Kawashima said. Sales of the 112-year-old company’s artificial intelligence (AI)-use substrates are robust, with customers buying up all that Ibiden has, Kawashima said. That demand is likely to last at least through next year, he added. Ibiden is building a new substrate factory in Gifu Prefecture, Japan, which is expected to go online at 25 percent production capacity around the last quarter of next year before reaching 50
RSS