Foxconn is manufacturing a higher value in China 20 Feb 2018 The Taiwan assembler of Apple's iPhone plans to spin off a subsidiary onto the Shanghai exchange. Fresh funds will help it push into cloud computing and robotics. Given the new-share pricing norm of about 23 times earnings, Foxconn should be engineering even greater benefits.
Nike supplier risks own goal with $1.4 bln buyout 22 Jan 2018 Pou Chen, the world’s biggest shoemaker, is bidding for full control of Hong Kong-listed sportswear retailer Pou Sheng. Rising pressure from e-commerce makes this risky for the buyer. With a fair price on offer, outside investors should let the Taiwanese group get on with it.
Bitcoin’s siren song could send TSMC off course 18 Jan 2018 Surging demand for processors used in mining digital tokens boosted results at the world's top contract chipmaker. That helps make TSMC less dependent on smartphones. When the $210 bln giant plans future investment, though, placing big bets on crypto-currency would be foolish.
Apple’s iPhone factory placed briefly on hold 15 Nov 2017 Foxconn, maker of the 10th anniversary X model, reported a 39 pct slide in quarterly profit and lower margins amid production snags. The setbacks should be temporary. As iPhone orders roll in and production picks up, the Taiwanese manufacturer's fortunes will turn around quickly.
Sea IPO lures investors angling for next big thing 20 Oct 2017 The Singaporean startup raised nearly $900 mln in a pricier-than-expected U.S. listing. That suggests investors looked past growing losses for fear of missing out on what could become Southeast Asia’s answer to Tencent or Alibaba. Those comparisons are a stretch.
iPhone boost is prelude to bumper year for TSMC 19 Oct 2017 Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.
Rivals circle Taiwan’s TSMC in new chip era 3 Oct 2017 Morris Chang, father of Taiwan's chip sector, is retiring at 86. His successors were groomed for years to take over the $189 bln behemoth Chang founded three decades ago. They'll need to work hard to defend TSMC's dominance against Samsung and rising mainland competitors.
HTC tethers itself to a new virtual reality 21 Sep 2017 The ailing Taiwanese firm will sell part of its handset unit to Google for $1 billion. This will free up HTC to focus more on its risky but promising VR business, where it is winning market share. Deeper ties with the U.S giant might also help fend off rivals Sony and Facebook.
Foxconn’s U.S. move sends false reshoring signal 27 Jul 2017 The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.
Taiwan deals foreign private equity another blow 18 Jul 2017 Carlyle-appointed directors are in legal trouble in Taiwan, Bloomberg reports. Whatever the merits, the market has been hard on buyout firms, many of them stuck mopping up decade-old messes. If Taipei wants economic revival, it needs to send warmer signals to foreign investors.
Taiwan, not China, is its own worst enemy 24 Apr 2017 Complacence has left the island in an economic funk. China-sceptic President Tsai, elected on a tide of domestic discontent, has a $29 bln stimulus package to bolster growth, but bolder reforms are hobbled by politics. That may leave Taiwan even more dependent on its neighbour.
Foxconn’s offer to Toshiba is too rich to ignore 11 Apr 2017 The Taiwanese giant is reportedly dangling a $27 bln offer for Toshiba's memory unit. This could be bluster: Foxconn must bid high to offset political concerns, and may end up cutting its price. Still, Toshiba owes it to long-suffering investors to take this seriously.
Foxconn’s $7 bln U.S. bet goes beyond politics 23 Jan 2017 Building a huge American factory would fit neatly with President Trump's push to create domestic jobs. That could help the Taiwanese iPhone maker navigate trade disputes. Grabbing a share of the U.S. television market could also help revive recently acquired subsidiary Sharp.
Cox: Taiwan deserves better than Trump’s drive-by 15 Dec 2016 In the days since the U.S. president-elect trashed protocol and spoke to President Tsai, it has become apparent that Asia's shining example of vibrant democracy got taken for a ride. A flicker of pride can't offset being played as a pawn in Trump's antagonistic approach to China.
China will show Trump more carrot than stick 9 Dec 2016 The People's Republic likes to test out new U.S. presidents. Its response to the TV tycoon’s early tantrums, however, hints at a more measured approach. China will try to avoid provoking Trump on currency and military issues, but take a harder line on investment and trade.
Trump to U.S. businesses in China: drop dead 5 Dec 2016 U.S. President-elect Donald Trump's precedent-breaking call with Taiwan's president, followed by ominous tweets about Chinese policy and American firms' overseas production, has diplomats scrambling. One thing is clear: Trump doesn't care about U.S. investments in China.
Powerful owners hobble Asia’s governance reform 29 Sep 2016 Asian corporate governance is improving despite frequent scandals, according to a review, which goes on to call on institutional investors to speak up more. Fair enough, but majority owners can still bully outsiders so long as the latter lack say over independent directors.
ASML’s $3 bln deal is a big bet on tiny tech 16 Jun 2016 The semiconductor-equipment maker is buying Taiwan's Hermes Microvision. The target's sales have plunged and global chip demand is cooling. But ASML's biggest-ever deal should make it even more indispensable to manufacturers as they prepare to make next-generation chips.
Chip deals will set tone for Taiwan-China ties 20 May 2016 New president Tsai Ing-wen will soon decide whether to approve investments worth almost $1 bln by a Beijing-backed group. China’s push into semiconductors is a challenge for Taiwan’s tech-dependent economy. The outcome of the stalled deals will shape broader economic relations.
Sharp take-under oddly denotes Japanese success 30 Mar 2016 Foxconn has clinched control of the ailing Japanese display maker for a reduced $3.5 bln. Fixing Sharp will be a tough task for the Taiwanese giant led by Terry Gou. But this historic, if somewhat ugly and complicated deal, is Exhibit A that Japan Inc is capable of reform.