ELECTRONICS
HTC forms VR alliance
HTC Corp (宏達電) yesterday announced at the Mobile World Congress Shanghai that it has formed a virtual reality (VR) alliance with 28 global investment firms, aiming to provide US$10 billion to VR content developers around the world. The Virtual Reality Venture Capital Alliance is targeted to help foster long-term growth in the VR industry through sharing and investing in both technology and content creators, HTC said. Among the investment firms are Sequoia Capital (紅杉資本) and Matrix Partners (經緯中國). Last week, HTC chairwoman Cher Wang (王雪紅) said the company in April launched a US$100 million accelerator program for VR start-ups in Taipei, Beijing and San Francisco.
IC DESIGNERS
MediaTek joins 5G center
Handset chip designer MediaTek Inc (聯發科) yesterday said it has joined a 5G innovation center created by China Mobile Ltd (中國移動) in a bid to secure a better position in China’s 5G market. The two companies will collaborate in facilitating the standardization of 5G technology and developing an ecosystem, products and application platforms together, MediaTek said in a statement. The Taiwanese firm said it aims to become one of the world’s first 5G chip suppliers in 2020.
SECURITY
Domestic sector eyes growth
Only 0.7 percent of homes in Taiwan are equipped with modern security systems, compared with 3 to 4 percent in Japan and 2 to 3 percent in South Korea, implying ample room for the domestic security service sector’s growth, Macquarie Capital Securities Ltd’s Taiwan branch said in a report released yesterday. The rising penetration rate in the residential sector, fueled by an aging population and growing demand in the smart home segment, will drive long-term growth for the sector, the brokerage said. As brand reputation and service quality are most critical to gain market share in the residential market, Taiwan Secom Co (中興保全) — the largest player in Taiwan with more than 50 percent market share — should be among the best performers in the sector, Macquarie said.
ECONOMIC AFFAIRS
Vice minister appointed
The Ministry of Economic Affairs yesterday appointed Intellectual Property Office Director-General Wang Mei-hua (王美花) to be its vice minister, citing her expertise in law and skills in communication and leadership. The ministry said Wang will supervise affairs of the Bureau of Foreign Trade, the Intellectual Property Office and the Department of Commerce after she takes the position next month. One of the priorities awaiting Wang would be supervising the drafting of an amendment to the Company Act (公司法) in an effort to improve Taiwan’s environment for start-ups, said a ministry official who is familiar with the matter.
INTERNET
Chinese censor replaced
China is replacing its top Internet regulator and censor, Lu Wei (魯煒), who had become the face of the government’s increasingly complicated dealings with foreign technology companies. Xinhua news agency yesterday reported that Lu would be replaced by his deputy, Xu Lin (徐麟), in implementing Beijing’s policies concerning the Internet, including overseeing social media and negotiating with technology firms that want to do business in China. The outspoken and gregarious Lu spent years defending China’s censorship policies and restrictions on foreign social media platforms as a matter of national security.
HANDOVER POLICY: Approving the probe means that the new US administration of Donald Trump is likely to have the option to impose trade restrictions on China US President Joe Biden’s administration is set to initiate a trade investigation into Chinese semiconductors in the coming days as part of a push to reduce reliance on a technology that US officials believe poses national security risks. The probe could result in tariffs or other measures to restrict imports on older-model semiconductors and the products containing them, including medical devices, vehicles, smartphones and weaponry, people familiar with the matter said. The investigation examining so-called foundational chips could take months to conclude, meaning that any reaction to the findings would be left to the discretion of US president-elect Donald Trump’s incoming team. Biden
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
HON HAI LURKS: The ‘Nikkei’ reported that Foxconn’s interest in Nissan accelerated the Honda-merger effort out of fears it might be taken over by the Taiwanese firm Nissan Motor Co has become the latest buyout target in Japan as it explores a merger with Honda Motor Co and faces an overture from Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) internationally. Shares in Nissan yesterday jumped 24 percent, the most on record, to hit the daily limit, after the two Japanese automakers acknowledged that talks are ongoing to better position themselves for competitive challenges during a time of upheaval in the global auto industry. Foxconn — a Taipei-based manufacturer of iPhones, which has been investing heavily in factories to build electric vehicles — has also
CHIP SUBSIDY: The US funding would help alleviate the financial pressure from building two fabs in the US and should lift gross margins in 2026, the company said GlobalWafers Co (環球晶圓), the world’s third-largest silicon wafer supplier, yesterday said it is to receive US$406 million in subsidies from the US Department of Commerce for two new US fabs under the CHIPS and Science Act, with the first batch of the funds likely coming next year. The grant represents 10 percent of the planned investments of US$4 billion in advanced semiconductor wafer manufacturing facilities in Texas and Missouri, GlobalWafers said. The commerce department is to disburse the funds based on the completion of project milestones over a multiyear timeframe, the company said. Along with the tax credit, which is equal to
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