Chi Mei Corp (奇美實業), a leading synthetic and electronic materials supplier, yesterday said that it has incurred more than NT$1 billion (US$35.89 million) in losses after disposing of some of its stake in flat panel maker Innolux Corp (群創光電).
The sale of about 183.71 million Innolux shares, representing a more than 2 percent stake in the company, came after a rethink about how it wanted to reallocate its funds, Chi Mei said in a filing with the Taiwan Stock Exchange.
The company disposed of the Innolux shares in four transactions between Aug. 10 and Wednesday last week and it rceived NT$3.26 billion from the sales, incurring NT$1.114 billion in losses.
Those funds would be invested in US dollar-denominated bonds, which are expected to yield a higher return, said Chi Mei, whose stake in Innolux has now fallen to 0.83 percent at a time when flat panel prices are falling due to weakening global demand.
Innolux shares hit NT$32.55 on April 29, a 10-year intraday high, but they have since come under pressure amid concerns over falling product prices.
The shares fell 47 percent between April 29 and Wednesday last week, the last day Chi Mei sold Innolux shares.
Before the disposal, Chi Mei was Innolux’s third-largest shareholder with a 2.59 percent stake, trailing Hon Hai Group’s (鴻海集團) 6.79 percent and the Labor Pension Fund’s 2.89 percent, according to Innolux’s latest annual report.
Innolux posted its highest-ever quarterly net profit of NT$21.4 billion in the second quarter, or earnings per share at NT$2.05, but flat panel prices, especially large screens for TVs, have since fallen.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
SUBSIDIES: The nominee for commerce secretary indicated the Trump administration wants to put its stamp on the plan, but not unravel it entirely US President Donald Trump’s pick to lead the agency in charge of a US$52 billion semiconductor subsidy program declined to give it unqualified support, raising questions about the disbursement of funds to companies like Intel Corp and Taiwan Semiconductor Manufacturing Co (台積電). “I can’t say that I can honor something I haven’t read,” Howard Lutnick, Trump’s nominee for commerce secretary, said of the binding CHIPS and Science Act awards in a confirmation hearing on Wednesday. “To the extent monies have been disbursed, I would commit to rigorously enforcing documents that have been signed by those companies to make sure we get
RSS