EQUITIES
TAIEX down on US data
The TAIEX yesterday took a beating, plunging nearly 200 points, as investors took their cues from heavy losses on US markets caused by weaker-than-expected economic data. Selling again focused on large-cap electronics stocks, driving the broader market lower, while the transportation sector also came under pressure, led by shipping heavyweights. The TAIEX closed down 199.79 points, or 1.29 percent, at 15,240.13. Turnover totaled NT$243.465 billion (US$8.2 billion), with foreign institutional investors selling a net NT$5.94 billion of shares on the main board, Taiwan Stock Exchange data showed.
CONSTRUCTION
Private firms up investment
The Ministry of Finance yesterday said that the private sector’s participation in public construction totaled NT$195.4 billion in the first half of this year, exceeding last year’s total investment of NT$188.8 billion. Based on the scale of investment projects currently under negotiation, valued at NT$40 billion, the total investments for this year could hit a new record, the ministry said. An investment conference focusing on the private sector’s participation in public construction projects is to take place at the Taipei Nangang Exhibition Center tomorrow, it said. NT$224.5 billion of public construction projects are planned for the second half of this year and the first half of next year would be the focus of the conference, it said.
TECHNOLOGY
HTC optimistic about VR
HTC Corp (宏達電) said it remains upbeat about the overall virtual reality (VR) market, adding that it is still growing, especially the business-to-business segment. Telecoms are expected to support the development of the market, HTC Asia-Pacific general manager Charles Huang (黃昭穎) said on Tuesday while launching the company’s latest HTC Desire 22 Pro handset. The company is working with the Kaohsiung City Government to introduce the latest updates to its open-source metaverse platform Viverse to various sectors in the city, enabling anyone to jump into the virtual world at any time from any place via their smartphone or any other device that has a Web browser able to run VR experiences, Huang said. The company is also cooperating with the Taoyuan City Government to offer VR services after the third quarter, he said. HTC is working with several companies in Taiwan to launch metaverse services. For instance, in collaboration with Taiwan’s three major telecoms, HTC plans to offer a range of services designed to be compatible with its metaverse platform, Huang said. It would also work closely with the banking and financial industry, he added.
MINING
Tianqi planning HK listing
Tianqi Lithium Corp (天齊鋰業), a Chinese supplier of the key material used in batteries, is planning to raise as much as US$1.7 billion in what is set to be Hong Kong’s biggest listing this year. The Chengdu-based company, which is already listed in Shenzhen, is offering 164.1 million shares at HK$69 to HK$82 each, it said in a news release yesterday. The price range offers a maximum 52 percent discount on its A-share price at yesterday’s close. If an over-allotment option is exercised, proceeds could increase to nearly US$2 billion. The company intends to use the proceeds for working capital, repaying debt and funding the construction of a plant, among other things, the release said. Pricing is expected on Wednesday, and the shares are set to begin trading in Hong Kong on July 13.
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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