JAPAN
Trade deficit narrows
The trade deficit narrowed for the second month last month, as the price of fuel eased and brought down import costs. The trade gap shrank to ￥754.5 billion (US$5.6 billion) from a revised ￥898.1 billion in February, the Ministry of Finance reported yesterday. Economists had forecast a ￥1.29 trillion shortfall. Imports grew 7.3 percent from a year earlier, the smallest gain in two years, as a firmer yen and falling commodity prices, including oil, curbed import costs. Exports were up 4.3 percent from a year earlier, led by vehicle shipments. While smaller than the earlier month, the deficit has extended its streak to 20 months and is seen weighing on recovery prospects.
TECHNOLOGY
Seagate fined for China deal
US authorities on Wednesday imposed a US$300 million penalty on Seagate Technology Holdings PLC, to resolve alleged contraventions of export controls related to selling hard disk drives to Huawei Technologies Co (華為), the US Department of Commerce said. The manufacturer was involved in the shipment of hard disk drives valued at more than US$1.1 billion to Huawei entities despite US controls. The commerce department said the breaches took place between August 2020 and September 2021.
TECHNOLOGY
Nokia EPS miss forecast
Finland’s Nokia Oyj yesterday reported a lower-than-expected rise in earnings in the first quarter of this year as economic headwinds affected spending by its customers. The telecommunications equipment maker said its net profit jumped 32 percent to 289 million euros (US$317 million), but its earnings per share (EPS) amounted to 0.06 euros, weaker than the 0.07 euros expected in a survey of analysts by financial data firm FactSet Inc. Its comparable operating margin — a profitability yardstick — declined to 8.2 percent from 10.9 percent a year earlier.
COSMETICS
L’Oreal sales grow 14.6%
French beauty products giant L’Oreal SA yesterday posted double-digit percentage sales growth in the first quarter of this year despite a dip in China at the beginning of the year. The company said sales rose by volume and value, jumping 14.6 percent from the same period last year to 10.38 billion euros. North Asia sales rose only 1.1 percent due to a drop “in continental China at the very beginning of the year as a result of the evolution of the health situation,” the company said. Sales grew 16.6 percent in Europe, L’Oreal’s biggest region, with gains lead by cosmetics, perfumes and skin treatments.
TECHNOLOGY
IBM forecasts 3-5% growth
International Business Machines Corp (IBM) gave a forecast for annual revenue in line with analysts’ projections, delivering a cautiously optimistic signal about technology spending in an uncertain economy. Sales would increase 3 to 5 percent this year, the company said on Wednesday, meeting analysts’ estimates. The company affirmed a previous free cash flow forecast of US$10.5 billion for the year. IBM reported first-quarter revenue of US$14.3 billion, little changed from the same period a year earlier and slightly below analysts’ average estimate. Profit excluding some items was US$1.36 per share in the quarter ended March 31. Analysts projected US$1.25 per share, data compiled by Bloomberg showed.
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
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
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
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