Taiwan

Foxconn’s global dealmaking suffers Sharp shock

24 May 2023

The iPhone supplier rescued the Japanese electronics group in 2016 with a promise to turn it around. Sharp’s surprise $1.6 bln writedown casts doubt on the Taiwanese group’s grip on its investment. It also raises questions about Foxconn’s push into assembling electric vehicles.

US-China chip spat hangs over TSMC’s recovery

19 Apr 2023

Quarterly earnings at the Taiwanese giant are set to fall 5%, but demand should rebound soon. Beijing's retaliatory strategy against US chip sanctions is a bigger worry. Pressure on TSMC customers like Apple to shift orders to mainland suppliers would really hurt.

How US and allies can find common ground on China

17 Apr 2023

Emmanuel Macron is not the only US partner wary of being drawn into a Taiwan crisis. But America and its allies will be stronger if they can agree more about dealing with the People’s Republic. Part of the answer is to focus on de-risking rather than decoupling, says Hugo Dixon.

Make-in-India dials up a tycoon premium

6 Mar 2023

Foxconn is leading a charge by foreigners to team up with local giants including Tata and Vedanta. Such partners can help cut red tape and tap subsidies, freeing up incoming manufacturers to focus on boosting production quality. For now, it is a win-win for those scaling up fast.

Foxconn reinvents itself, and EV supply chains

3 Jan 2023

The Taiwanese giant plans to make electric vehicles, and the chips and batteries that go into them, for global automakers. That’s a twist on its business of churning out iPhones for Apple in China. As far as strategic pivots go, this one is ambitious and much needed.

Chip dilemma will buy Beijing precious time

19 Dec 2022

America is pushing Asian and European allies to stifle semiconductor progress in China. But antagonising the $466 bln market will be costly for South Korea's Samsung and Dutch ASML as global demand slows. Their hesitancy to fully embrace the blockade will benefit Beijing.

Taiwan’s Foxconn slowly checks into iPhone detox

1 Dec 2022

The $45 bln electronics maker’s relationship with Apple was a money-spinner. Yet even before protests disrupted Chinese production lines in November, the latter was hedging its dependence on Foxconn, denting profitability. Withdrawal will be gradual, painful and healthy.

Piyush Gupta might be banking’s boldest boss

15 Nov 2022

Buying banking assets is complex at the best of times. Singapore’s $65 bln DBS added a geopolitical twist when it agreed to acquire Citi’s Taiwan consumer bank. As tensions rise, Gupta is holding his nerve on the deal due to close next year. Then again, he has little choice.

Buffett places classic chips in $4 bln Taiwan bet

15 Nov 2022

His Berkshire Hathaway now owns 1.2% of TSMC. The semiconductor giant’s stock has taken a beating this year, in part on fear China might invade Taiwan, its HQ. But the company has a near-monopoly in cutting-edge tech. Such traits have long appealed to the Oracle of Omaha.

Review: U.S.-China tech fight leaves global losers

30 Sep 2022

Historian Chris Miller’s “Chip War" offers a timely account of America’s increasingly frantic efforts to stay ahead of China on semiconductors. Both sides have policy and trade weapons at their disposal. The collateral damage to big companies and other countries will be immense.

Taiwan digs trenches in battle for chip talent

17 Aug 2022

Officials may force Foxconn to unwind an $800 mln deal with a Chinese chipmaker. This follows a crackdown on mainland companies poaching engineers, as Taipei tries to keep its tech expertise to itself. It could make a surprisingly powerful defence against hostile Beijing.

China’s economic plight ups Pelosi visit risks

2 Aug 2022

Despite Beijing’s warnings, U.S. House of Representatives Speaker Nancy Pelosi landed in Taiwan on Tuesday. Slowing growth and supply chain constraints make it hard for China to retaliate against American or Taiwanese firms. Oddly, that makes a military showdown more likely.

Moped charger gets trapped in electric-car traffic

7 Apr 2022

Shares in Engine No. 1-backed Gogoro have jumped 16% since this week’s debut, adding zip to the Taiwanese battery-swapping scooter maker’s valuation. Yet it trails most car-charging outfits. There are risks, but Asia’s reliance on two-wheelers warrants a narrower gap.

Russia is dry run for bigger China sanctions test

25 Feb 2022

The threat of penalties didn’t stop Vladimir Putin from invading Ukraine. Sanctions would have even less chance of preventing China from taking control of Taiwan. The deeper the trade ties, the greater the chance of self-harm. And China has a head start in creating workarounds.

Taiwan’s TSMC is wisely cashing in more chips

13 Jan 2022

The $620 bln top chipmaker is hiking prices in response to the global shortage, giving up some of its relative restraint versus competitors. Coupled with voracious demand from the likes of Apple, the increase will pad profits even as it ramps up spending to maintain its huge tech lead.

TSMC can fix Taiwan’s stalled green transition

17 Dec 2021

Referendums on a nuclear power plant and a fossil-gas terminal spotlight the island’s 20% renewables target. Bureaucracy and red tape, though, have held up wind and solar projects. The local chipmaking champion’s voracious appetite for cleaner power offers a much-needed spark.

TSMC’s global expansion will chip away at its edge

12 Nov 2021

The world’s biggest semiconductor maker is building a $7 bln plant with Sony in Japan, and it has similar U.S. plans underway. Diversifying production outside Taiwan offers a useful geopolitical hedge. The trade-off is higher costs, which threaten to erode its valuation premium.

Foxconn cars powered by both hype and substance

19 Oct 2021

The $53 bln iPhone-maker showcased its first electric-vehicle prototypes as part of an ambitious pivot into autos. Founder Terry Gou's track record of overpromising is enough to warrant doubt. Look past the fanfare, though, and there's much to like about Foxconn's EV progress.

Taiwan’s top diplomat is a $567 bln chipmaker

15 Jul 2021

Tensions between Beijing and the self-ruled island are spiking amid vaccine squabbles and fighter jet sorties. Enter TSMC, whose economic and geopolitical clout has risen amid the semiconductor shortage. It could be Taipei’s best political advantage against a hostile neighbour.

Everyone’s chipmaker deftly tries to please all

15 Apr 2021

A global shortage spotlights TSMC's near-monopoly in manufacturing advanced semiconductors. It's raising capex 66% as earnings soar and foreign governments lobby it to boost output. That’s a huge spending jump but the $560 bln giant has a strong track record of managing risk.