A plan by Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, to increase wages for its employees in Taiwan in July is expected to prompt other enterprises in the local business sector to follow suit, an analyst said yesterday.
“Hon Hai Precision is a local business leader. I think its move will serve as a strong indicator to the business sector,” Mirae Asset Management analyst Arch Shih (施博元) said.
Hon Hai chairman Terry Gou (郭台銘) said in a TV interview on Wednesday that his company is reviewing pay scales for its employees in Taiwan as the public is faced with a rising cost of living since the government removed a mechanism to partially freeze domestic fuel prices.
The government is also likely to raise electricity prices after the latest increase in fuel prices, which became effective on Monday.
Gou said he hopes the pay increases will go into effect in July after the current review is completed.
He added that employees are Hon Hai Precision’s most precious asset and that under the current circumstances the company should raise their wages.
However, he did not elaborate on the size of the salary increase for the company’s approximately 10,000 employees in Taiwan.
Local media have reported that some other high-tech heavyweights, such as notebook computer maker Compal Electronics Inc (仁寶電腦) and flat panel makers AU Optronics Corp (友達光電) and Chimei Innolux Corp (奇美電子), might also give their employees a pay raise later this year.
The plan to raise wages did not have an adverse impact on Hon Hai shares on the local bourse, with the stock outperforming the broader market to close up 0.91 percent at NT$111.
Shih said that was because investors have been upbeat about a tie-up between Hon Hai and Japan’s Sharp Corp that was announced last month.
TRADE WAR: Tariffs should also apply to any goods that pass through the new Beijing-funded port in Chancay, Peru, an adviser to US president-elect Donald Trump said A veteran adviser to US president-elect Donald Trump is proposing that the 60 percent tariffs that Trump vowed to impose on Chinese goods also apply to goods from any country that pass through a new port that Beijing has built in Peru. The duties should apply to goods from China or countries in South America that pass through the new deep-water port Chancay, a town 60km north of Lima, said Mauricio Claver-Carone, an adviser to the Trump transition team who served as senior director for the western hemisphere on the White House National Security Council in his first administration. “Any product going
TECH SECURITY: The deal assures that ‘some of the most sought-after technology on the planet’ returns to the US, US Secretary of Commerce Gina Raimondo said The administration of US President Joe Biden finalized its CHIPS Act incentive awards for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), marking a major milestone for a program meant to bring semiconductor production back to US soil. TSMC would get US$6.6 billion in grants as part of the contract, the US Department of Commerce said in a statement yesterday. Though the amount was disclosed earlier this year as part of a preliminary agreement, the deal is now legally binding — making it the first major CHIPS Act award to reach this stage. The chipmaker, which is also taking up to US$5 billion
High above the sparkling surface of the Athens coastline, the cranes for building the 50-floor luxury tower centerpiece of Greece’s future “smart city” look out over the Saronic Gulf. At their feet, construction machinery stirs up dust. Its backers say the 8 billion euro (US$8.43 billion) project financed by private funds is a symbol of Greece’s renaissance after the years of financial stagnation that saw investors flee the country. However, critics see it more as a future “ghetto for the rich.” It is hard to imagine that 10km from the Acropolis, a new city “three times the size of Monaco”
STRUGGLING BUSINESS: South Korea’s biggest company and semiconductor manufacturer’s buyback fuels concerns that it could be missing out on the AI boom Samsung Electronics Co plans to buy back about 10 trillion won (US$7.2 billion) of its own stock over the next year, putting in motion one of the larger shareholder return programs in its history. South Korea’s biggest company would repurchase the stock in stages over the coming 12 months, it said in a regulatory filing on Friday. As a first step, it would buy back about 3 trillion won of paper starting today up until February next year, all of which it would cancel. The board would deliberate on how best to effect the remaining 7 trillion won of buybacks. The move
RSS