AUTOMAKERS
Tesla cuts prices
Tesla Inc has cut the price of several of its models again in a further sign that chief executive officer Elon Musk is willing to sacrifice the automaker’s profitability in the face of rising interest rates that might dent consumer demand. The Austin, Texas-based company said on its Web site that the price of its Model Y long-range all-wheel drive model would decrease by 5.6 percent to US$49,990, while the price of the Model Y Performance would drop by 5.2 percent to US$53,990. The cost of a Model 3 rear-wheel drive would be cut by 4.7 percent to US$39,990. It is the second price cut this month as the automaker seeks to stoke demand.
AUTOMAKERS
Sales in Europe jump
Auto sales in Europe jumped the most since May 2021 as supply of key components including semiconductors continues to improve. Registrations of new vehicles jumped 26 percent last month to 1.42 million, the European Automobile Manufacturers’ Association said yesterday, extending the industry’s growth streak to eight consecutive months. Automakers are benefiting from orders accumulated during the worst of their supply crises and a weak showing in the same month last year. Last month’s gains were especially pronounced in Spain and Italy, where sales expanded 66 percent and 41 percent respectively. In Germany, the region’s largest market, registrations increased 17 percent. Volkswagen AG and Renault SA led gains among major European automakers with respective increases of 35 percent and 27 percent.
BEVERAGES
Heineken gets a boost
Heineken NV’s first quarter was boosted by beer drinkers in Europe even as inflation persists in many key markets, which helped offset a weaker performance in the Asia-Pacific region and Nigeria. Shares in the world’s second-largest brewer rose nearly 4 percent in early trading yesterday after it said that consumers in Europe were still largely accepting higher prices for its beers, which include its namesake brand and more premium offerings such as Birra Moretti, Beavertown and El Aguila. Overall volumes fell 3 percent on an organic basis for the quarter ended last month, below the average analyst estimate for a 1.04 percent decline. Vietnam and Nigeria had tough quarters, but investors were expecting that. Heineken stuck to its outlook for adjusted operating profit to grow organically by mid to high-single digits this year even as chief executive officer Dolf van den Brink warned of cloudy consumer demand for its products.
TECHNOLOGY
El Salvador passes AI bill
Lawmakers from the ruling party in El Savador on Tuesday approved a bill to eliminate for 15 years taxes on companies developing artificial intelligence (AI) and other computer programming work in a bid to make the country a more attractive tech destination. The technology tax cut was championed by Salvadoran President Nayib Bukele, who first touted the legislation late last month. The bill exempts eligible companies from income tax, capital gains and local government taxes, as well as tariff payments on imported goods that technology businesses need. Lawmakers approved the bill with 69 voting in favor among the 84-member unicameral legislature. Bukele’s Nuevas Ideas party holds 56 of the seats.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
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