Rexchip Electronics Corp (瑞晶), a joint venture between Taiwanese DRAM chipmaker Powerchip Technology Corp (力晶) and Japan-based Elpida Memory Inc, may be delisted from the local emerging stock market, the GRETAI Securities Market said yesterday.
The GRETAI, which operates the local emerging stock market and the over-the-counter (OTC) market, said the delisting is likely after both Cathay Securities Co (國泰證券) and Grand Cathay Securities Corp (大華證券) terminated contracts to provide financial services to financially troubled Rexchip.
Under the current securities listing rules, an emerging stock needs two advisory securities firms to provide the necessary assistance for it to stay on the local bourse. The GRETAI said it is reviewing the situation before making a formal announcement about a delisting.
The departure of the two advisory firms reflects market concerns over Rexchip’s financial position as the global DRAM sector is in a down cycle amid weak demand and falling prices.
Rexchip is in talks with its creditors to roll over part of its loan portfolio. The firm has a NT$2.6 billion loan (US$89.04 million) due to expire on Nov. 20, but it has only about NT$500 million in cash and cash equivalents.
According to the Taiwan Stock Exchange, Rexchip had NT$20.77 billion in outstanding debt, including NT$15.59 billion in loans with a maturity of less than one year, as of the end of June.
Rexchip shares moved between NT$3 and NT$3.88 to close at an average of NT$3.66 on the emerging stock market yesterday, down from NT$3.83 the previous day.
A boom: The airlines saw a rise in international flights and demand for cargo services, with the latter attributed to AI needs and vendors opting to have items delivered by air China Airlines Ltd (CAL, 中華航空) and EVA Airways Corp (長榮航空) have reported their highest-ever net profit for the first half of the year amid a boom in international travel and growing demand for cargo services. The global airline industry’s momentum from last year extended into the first six months of this year. That momentum along with an increase in the number of flights supported passenger revenue growth, the two airlines said on Friday. CAL’s net profit in the first six months of this year hit a new high of NT$7.14 billion (US$220 million), resulting in earnings per share of NT$1.08, the airline
DIGITAL TRANSFORMATION: Domestic chip gear output is forecast to be higher than last year’s NT$149.7bn as strong demand for AI and HPC technologies continues The production value of Taiwan’s semiconductor equipment is likely to grow this year after falling 7.3 percent last year amid strong global demand for artificial intelligence (AI) and other emerging technologies, the Ministry of Economic Affairs said. The ministry made the comment last week after reporting that the production value of Taiwan-made semiconductor equipment for the first five months of this year rose by 5.5 percent from a year earlier to NT$62.7 billion (US$1.93 billion). If the forecast is correct, the production value of Taiwan’s semiconductor equipment would be higher than the NT$149.7 billion last year and stay above the NT$100 million
Malaysia is gaining more heft in the global supply chain as Infineon Technologies AG opens a major semiconductor manufacturing complex in the country, the Southeast Asian nation’s prime minister said. “We are now be able to receive and expand the technology. It shows Malaysia is now going up the ladder,” Malaysian Prime Minister Anwar Ibrahim said yesterday at the opening ceremony of the first phase of Infineon’s 7 billion euros (US$7.7 billion) production site in the northern Malaysian district of Kulim. Anwar highlighted the need for the local governments and universities to help train the necessary talent to better accommodate Kuala Lumpur’s
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue rose 45 percent last month, accelerating its pace of growth from the second quarter and bolstering hopes for sustained strong demand for artificial intelligence (AI) chips from the likes of Nvidia Corp. Sales for the month reached NT$256.95 billion (US$7.92 billion). For the third quarter, analysts project TSMC revenue should grow 37 percent to NT$747.4 billion, with last month’s result suggesting TSMC could surpass those expectations. Taiwan’s biggest company is one of the key bellwethers for AI demand, as the go-to chipmaker for leading accelerator makers Nvidia and Advanced Micro Devices Inc. It is also