ELECTRONICS
ASMPT draws interest
ASMPT Ltd (先進太平洋股份有限公司), a semiconductor and electronics equipment maker, is attracting takeover interest from private equity firms, people with knowledge of the matter said. Alternative investment firm PAG is among those that have expressed interest in taking the Hong Kong-listed company private, said the people, who asked not to be identified discussing confidential information. PAG has sounded out several lenders about financing the potential deal, the people said. Founded in 1975, Singapore-headquartered ASMPT has more than 12,000 employees and operates in more than 30 countries, its Web site says.
ENERGY
Subsidies to hit US$1.65tn
The amount of money spent by governments subsidizing energy costs since Russia’s invasion of Ukraine is set to reach US$1.65 trillion by the end of the year, credit ratings agency S&P Global estimated. The firm calculated the total soared to US$10 trillion once COVID-19 pandemic spending was added on and that this year would see the overall stock of global sovereign debt reach a record US$65 trillion in absolute terms. S&P based the figures on the 137 countries that it provides credit scores for. It forecast those countries would borrow the equivalent of US$10.5 trillion this year, below the record US$11.5 trillion set in 2021, but 40 percent higher than the pre-pandemic average. Commercial sovereign debt as a proportion of world GDP would increase to about 66 percent this year from just under 64 percent last year, although that would be well below the pandemic-induced peak of 74 percent of GDP in 2020.
AVIATION
Boeing expands in India
Boeing Co yesterday said it would set up a facility in India to convert 737 passenger planes into dedicated freighters to tap into regional and global demand for the service. The investment, which adds to the US manufacturer’s expansion into India on top of a record plane order by flag carrier Air India, comes despite a global economic slowdown that has weakened the global air cargo market. The International Air Transport Association said global cargo demand in January fell almost 15 percent year-on-year. Air freight rates were 28 percent below the levels seen at the same time last year, data provider WorldACD said on Thursday. Boeing said it would set up the conversion facility in Hyderabad with Indian maintenance, repair and overhaul provider GMR Aero Technic. The deal adds to Boeing’s US$1 billion supply chain sourcing from India and should help support India’s ambitions to become a global cargo hub.
AUTOMAKERS
Nissan EV stalls
Nissan Motor Co’s new Ariya electric vehicle (EV) has been hampered by problems at its high-tech production line, four people familiar with the matter said, slowing delivery of a car designed to put the automaker on the road to a comeback. Unveiled in 2020 to strong reviews, the crossover was Nissan’s first all-new global car in five years and signaled an intent to turn the corner on the turmoil that followed the ouster of former head Carlos Ghosn. However, production is running at least one-third below plan, keeping the Ariya from shipping to new customers, according to three of the people and production planning notes reviewed by Reuters. The shortfall represents a lost opportunity to capitalize on the Ariya’s buzz and test demand for the first of 19 new EVs Nissan plans to roll out by 2030.
COMPETITION: AMD, Intel and Qualcomm are unveiling new laptop and desktop parts in Las Vegas, arguing their technologies provide the best performance for AI workloads Advanced Micro Devices Inc (AMD), the second-biggest maker of computer processors, said its chips are to be used by Dell Technologies Inc for the first time in PCs sold to businesses. The chipmaker unveiled new processors it says would make AMD-based PCs the best at running artificial intelligence (AI) software. Dell has decided to use the chips in some of its computers aimed at business customers, AMD executives said at CES in Las Vegas on Monday. Dell’s embrace of AMD for corporate PCs — it already uses the chipmaker for consumer devices — is another blow for Intel Corp as the company
STIMULUS PLANS: An official said that China would increase funding from special treasury bonds and expand another program focused on key strategic sectors China is to sharply increase funding from ultra-long treasury bonds this year to spur business investment and consumer-boosting initiatives, a state planner official told a news conference yesterday, as Beijing cranks up fiscal stimulus to revitalize its faltering economy. Special treasury bonds would be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da (袁達), deputy secretary-general of the Chinese National Development and Reform Commission. “The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said. Under the program launched last year, consumers can
TECH PULL: Electronics heavyweights also attracted strong buying ahead of the CES, analysts said. Meanwhile, Asian markets were mixed amid Trump’s incoming presidency Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday closed at a new high in the wake of a rally among tech stocks on Wall Street on Friday, moving the TAIEX sharply higher by more than 600 points. TSMC, the most heavily weighted stock in the TAIEX, rose 4.65 percent to close at a new high of NT$1,125, boosting its market value to NT$29.17 trillion (US$888 billion) and contributing about 400 points to the TAIEX’s rise. The TAIEX ended up 639.41 points, or 2.79 percent, at 23,547.71. Turnover totaled NT$406.478 billion, Taiwan Stock Exchange data showed. The surge in TSMC follows a positive performance
MediaTek Inc (聯發科) yesterday said it is teaming up with Nvidia Corp to develop a new chip for artificial intelligence (AI) supercomputers that uses architecture licensed from Arm Holdings PLC. The new product is targeting AI researchers, data scientists and students rather than the mass PC market, the company said. The announcement comes as MediaTek makes efforts to add AI capabilities to its Dimensity chips for smartphones and tablets, Genio family for the Internet of Things devices, Pentonic series of smart TVs, Kompanio line of Arm-based Chromebooks, along with the Dimensity auto platform for vehicles. MeidaTek, the world’s largest chip designer for smartphones
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