Category: General

The American Chamber of Commerce (AmCham) in Taiwan on Wednesday called on the Taiwan government to step up efforts to address issues surrounding energy security, labor shortages, and the reopening of the country’s borders.

In its latest white paper launched Wednesday, the business group, which represents 535 American and international companies with operations in Taiwan, urged the Taiwanese authorities to urgently address some of the issues it feared would threaten the country’s international competitiveness.

One of the pressing issues is energy supply in Taiwan, AmCham Vice Chairperson Andrea Wu (????) said at the paper’s launch event in Taipei Wednesday.

AmCham’s members are increasingly worried about the Taiwan government’s ability to ensure energy security and grid resilience while pushing for a transition to renewables, especially in light of the severe power outages seen in May 2021 as well as this March, Wu noted.

Wu called for more action by the government to accelerate renewables projects and update grid infrastructure in Taiwan, adding that the authorities should also roll out clearer incentives to draw the private sector into its efforts.

At the same time, Taiwan’s government ought to effectively address a deficit of highly skilled workers, as the problem has adversely impacted business operations in the country, Wu said.

While Taiwan benefits from a strong pool of well-educated, highly motivated, and hard-working talent, the country continues to suffer from shortages in certain key industries, such as the semiconductor and other technology-related companies, Wu said, adding that vigorous efforts to attract foreign talent and boost the English skills of local Taiwanese talent were urgently needed.

In addition, the AmCham urged Taiwan’s government to speed up efforts to reopen the country’s borders, as 80 percent of Taiwan’s residents have been fully vaccinated against COVID-19 with two doses.

Wu said while it was encouraging that Taiwan had shortened the mandatory quarantine period for overseas arrivals, people who tested positive for COVID-19 as well as their close contacts, such steps were not enough.

Such border control measures have continued to curb business travel between Taiwan and other countries and hinder foreign inbound investment, Wu said, adding that it was critical for the country to gradually move toward the full reopening of its borders.

Asked about whether AmCham’s members had raised concern over Taiwan’s security amid increasing military and political pressure from China, AmCham President Andrew Wylegala did not respond to the question directly, saying only that members would have their own assessments and business decisions based on the global and regional situations.

“We [the AmCham] naturally are hoping for the continuity of peace and stability in this region, around the Taiwan Strait, that is certainly conducive to our members’ interests,” Wylegala added.

Meanwhile, the AmCham also made suggestions to Washington in its white paper, urging the U.S. government to begin negotiations with its Taiwanese counterpart on a bilateral trade agreement.

AmCham also called on the U.S. to include Taiwan in its ongoing discussions with Japan and South Korea about promoting the resilience of the semiconductor industry.

The AmCham’s request is to ensure that relevant industries located in Taiwan would “have a seat on the table as we look at these complicated issues looking forward,” Wylegala noted, adding it would be “a mistake” not to include Taiwan as it had played a predominant role in this sector.

Source: Focus Taiwan News Channel

A Taiwan Navy S-70C anti-submarine helicopter crashed at the southern Kaohsiung Zuoying naval base during a training session on Wednesday afternoon, leaving the four-man crew with non-life threatening injuries.

A spokesperson for the Naval Fleet Command told CNA that military personnel were still at the scene of the crash, adding that more information on the incident will be released later.

Source: Focus Taiwan News Channel

Shares in Taiwan took a beating Wednesday, closing down by 380 points overall and erasing all of the gains from a session earlier, as investors locked in the previous session’s profits from the bellwether electronics sector, dealers said.

Market sentiment remained cautious about a rate hike cycle launched by the U.S. Federal Reserve to fight inflation so selling also spread to old economy stocks, in particular in the transportation sector, where several major shipping stocks are traded, pushing the main board even lower, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down by 380.89 points, or 2.42 percent, at 15,347.75, after moving between 15,346.95 and 15,687.46. Turnover totaled NT$278.53 billion (US$9.34 billion). The sell-off wiped out the main board’s Tuesday gain of 361.06 points, or 2.35 percent.

The market opened down by 0.26 percent as investors shrugged off a rebound on the U.S. markets, as the Dow Jones Industrial Average rose by 2.15 percent and the tech-heavy Nasdaq index increased by 2.51 percent overnight in a comeback from the worst weekly losses in two years, dealers said.

Hawkish U.S. Fed

Selling on the local main board escalated to plunge the Taiex below 15,400 points by the end of the session, with large semiconductor stocks and container cargo shippers in focus, as investors scrambled to pocket their profits from the previous daily session amid lingering fears over an aggressive Fed, they said.

“Despite a rally on Tuesday, the local main board remained technically unstable after a recent slump as market sentiment remained haunted by concerns over a rate hike by the Fed, which is expected to continue to drain funds out of the region for U.S. dollar-denominated assets,” MasterLink Securities analyst Tom Tang said. “There are growing concerns that an aggressive rate hike cycle will hurt the economy.”

Before Tuesday’s rebound, the Taiex had tumbled by about 1,300 points or 7.82 percent in the previous eight trading sessions, making the main board technically fragile, dealers said.

“In addition, investors witnessed Dow futures dipping again now, pointing to an ugly opening of the spot market later today, so they simply shifted to the sell side to take money and run, avoiding possible losses tomorrow,” Tang said.

Tech stocks

Tang said the tech sector was a focus of Wednesday’s selling amid fears that they would further lose their luster as their dividend yields are shy of rising bond yields after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the country, plunged by 2.08 percent to close at the day’s low of NT$494.50.

TSMC’s losses strongly contributed to the electronics sector and semiconductor sub-index falling by 2.80 percent and 3.16 percent, respectively, while the stock’s market capitalization fell by NT$272.2 billion to NT$12.82 trillion.

“As further volatility around the world’s equity markets is possible, it is hard to predict when TSMC and other tech heavyweights will see their nearest technical support,” Tang said.

Among other semiconductor stocks, United Microelectronics Corp., a smaller contract chipmaker, fell by 4.75 percent to end at the day’s low of NT$44.10, while smartphone IC designer MediaTek Inc. plunged by 7.03 percent to close at NT$807.00 as demand for smartphones has showed signs of weakening.

In addition, IC packaging and testing services provider ASE Technology Holding Co. dropped by 3.02 percent to end at NT$96.40, and display driver IC designer Novatek Microelectronics Corp. fell by 7.23 percent to close at NT$321.00, while power management IC designer Silergy Corp. rose by 1.04 percent to end at NT$2,435.00 after the company announced it would start a four-for-one stock split on July 13.

Also in the tech sector, iPhone assembler Hon Hai Precision Industry Co. fell by 2.23 percent to close at NT$109.50, and multi-layer ceramic capacitor (MLCC) supplier Yageo Corp. dropped by 4.96 percent to end at NT$335.50.

Shipping, financials

“Shipping stocks also served as another driver for today’s downturn as many investors appeared reluctant to hold them despite their large cash dividend payouts,” Tang said. “Their recent heavy drops in share prices scared away many investors.”

In the transportation sector, which fell by 5.08 percent, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, plunged by 7.27 percent to close at NT$102.00 after a brokerage lowered its target price on the stock, citing worries over a slowdown in the second half of this year. Its rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. also fell by 7.76 percent and 2.83 percent, respectively, to end at NT$101.00 and NT$120.00.

In the financial sector, which decreased by 1.36 percent, Fubon Financial Holding Co. fell by 2.37 percent to close at NT$61.70, and Cathay Financial Holding Co. dropped by 2.21 percent to end at NT$53.00.

Outperformers

Solar energy developers and related companies bucked the downturn on hopes that the government will come up with further measures for renewable power development, dealers said. Among them, solar energy module developer United Renewable Energy Co. rose by 2.38 percent to close at NT$21.50, and Danen Technology Corp., a supplier of silicon ingots used in solar energy equipment, increased by 2.61 percent to end at NT$13.75.

“Fed Chair Jerome Powell is scheduled to testify in the U.S. Congress Wednesday and Thursday. I suggest investors pay close attention to what he will say, which could move the U.S. markets and other markets in the world,” Tang said.

According to the TWSE, foreign institutional investors sold a net NT$22.44 billion worth of shares on the main board Wednesday.

Source: Focus Taiwan News Channel

Conductor Eliahu Inbal will not remain with Taipei Symphony Orchestra when his current three-year tenure ends in August, the orchestra said Wednesday, citing uncertainty in its programming due to the COVID-19 pandemic.

While Inbal, 86, had agreed in April to stay as chief conductor for another three years, he has since asked to be freed from that agreement, the orchestra said in a statement.

The Israeli conductor, who took up the post in 2019, said that apart from the uncertainty in the orchestra’s programming amid the COVID-19 pandemic, his other reasons for stepping down included physical and mental pressure due to Taiwan’s mandatory quarantine rule for all arrivals, according to the statement.

Taiwan’s mandatory quarantine regulation, first introduced in early 2020, was only recently cut from 14 days to 10 days in March, and then to three days in mid-June.

During Inbal’s most recent stay in Taiwan, the orchestra had scheduled five concerts in April and May, but three of them were canceled because of a surge in domestic COVID-19 cases in the country.

Inbal has agreed to work with the orchestra in the future as a guest conductor, according to the statement.

With his impending exit, Taipei Symphony Orchestra is rearranging its programming for the new season, in the second half of 2022, and it said details of its upcoming concerts will be announced in August.

The lineup for the new season currently includes conductors Jahja Ling (???) and Marco Boemi, as well as clarinetist Charles Neidich, the orchestra said.

Source: Focus Taiwan News Channel

An elementary school on Taiwan’s Orchid Island recently held its commencement ceremony, with only one student graduating, according to the principal.

In an interview with CNA, Syamen Womzas said the staff at Lanyu Primary School had tried to instill a sense of excitement in the June 16 ceremony, despite its small size.

At the ceremony, the one graduate was presented with her diploma, and teachers and other students took to the stage to to deliver congratulatory speeches and give her gifts, Syamen Womzas said.

“Regardless of how many students are graduating, we have to try to make it an unforgettable experience,” he said, adding that he wore traditional Tao attire to mark the occasion.

Over the years, the student population at the elementary school has dropped from an average 100 to about 30, Syamen Womzas said, attributing the decline to low birth rates and migration to other parts of the country.

Nevertheless, this year was the first time that any of the island’s four elementary schools – Lanyu, Dongqing, Yayu or Langdao – had only one graduate, he said.

Orchid Island, which is located off the southeast coast of Taiwan, has a population of just over 5,000 and is home to the Indigenous Tao people.

Source: Focus Taiwan News Channel

Shares in Taiwan staged a solid technical rebound Tuesday, surging more than 360 points as investors rushed to take advantage of a recent slump and pick up bargains, dealers said.

Buying focused on large-cap tech stocks, which had been battered by fears over a hawkish U.S. Federal Reserve, dealers said. The financial and old economy heavyweights also rode the waves of the rebound to lend additional support to the broader market, with the benchmark index breaching the 15,700 point mark by the end of the session, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 361.06 points, or 2.35 percent, at the day’s high of 15,728.64, after coming off a low of 15,428.33. Turnover totaled NT$238.998 billion (US$8.04 billion).

Upbeat U.S. stock futures

The market opened up 0.39 percent following a 1.75 percent fall on Monday, and buying accelerated amid expectations of a higher opening on the spot market later in the day in the wake of a more than 1.3 percent increase for futures on the Dow Jones Industrial Average, dealers said.

The bellwether electronics sector, which served as an anchor to the Taiex’s rebound Tuesday, rose 2.22 percent to close at the day’s high of 722.59, while the semiconductor subindex also gained 1.84 percent to end at the day’s high of 350.06.

“Looking at the current performance of the Dow’s futures, I think many investors here were simply betting on a rebound for U.S. markets tonight,” More Rich Securities Investment Consulting analyst Adam Lin said. “There was optimism that the shock from the latest rate hike by the Fed had been priced in after tumbles in share prices around the world.”

The Fed raised its key interest rates by 75 basis points last week to tackle rising inflation in the United States, which hit a four-decade high of 8.6 percent in the consumer price index growth for May.

In addition, the Fed has stated that an additional 50 or 75 basis point increase in July is possible.

“The recent selling on the local main board seems to have overshot the mark, prompting investors to pick up bargains soon after the market opened,” Lin said, referring to the around 1,300-point (7.82 percent) decline in the Taiex in the previous eight trading sessions amid concerns over an aggressive Fed.

Lin said the electronics sector drew significant interest throughout the session with large-cap semiconductor stocks in focus.

Lin added that these stocks had been the major victims of rising interest rates, losing their luster due to unattractive dividend yields compared with rising bond yields.

Tech stocks

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, rose 1.41 percent to close at the day’s high of NT$505.00, while United Microelectronics Corp., a smaller contract chipmaker, rose 2.60 percent to end at the day’s high of NT$49.30.

In addition, smartphone IC designer MediaTek Inc. rose 3.33 percent to close at the day’s high of NT$868.00, while IC packaging and testing services provider ASE Technology Holding Co. added 3.33 percent to end at NT$99.40, despite coming off a high of NT$99.50.

Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co. rose 2.75 percent to close at NT$112.00, and its metal-casing subsidiary Foxconn Technology Co. gained 3.21 percent to end at NT$54.60. Power management solutions supplier Delta Electronics Inc. soared 5.68 percent to close at NT$232.50.

Smartphone brand HTC Corp. surged 10 percent, the maximum daily increase to end at NT$46.30 after Cher Wang (???), the company’s chair, was named as an independent nonexecutive director by the China-based computing company Lenovo Group Ltd.

Dealers said the move by Lenovo to have Wang on board sparked speculation that the Chinese company will work with HTC in the emerging “metaverse” market, a reference to the in-vogue moniker for immersive internet technologies accessed through virtual reality and related devices.

“With the second quarter coming to an end soon, some mutual funds are also dressing up their books for the quarter by raising their holdings to boost share prices,” Lin said. “In addition to tech stocks, financial and old economy stocks have become targets.”

Outside tech

The financial sector rose 3.40 percent amid hopes that a widening interest spread will boost banks’ bottom lines. Fubon Financial Holding Co. rose 4.98 percent to close at NT$63.20, Cathay Financial Holding Co. gained 4.63 percent to end at NT$54.20, Taiwan Cooperative Financial Holding Co. grew 3.83 percent to close at NT$27.10, and CTBC Financial Holding Co. added 3.73 percent to end at NT$26.45.

In the old economy sector, Formosa Petrochemical Corp. gained 3.33 percent to close at NT$93.90, and Nan Ya Plastics Corp. rose 1.95 percent to end at NT$83.70.

Elsewhere in the old economy sector, EVA Airways soared 10 percent to close at NT$31.55, and rival China Airlines gained 7.87 percent to end at NT$24.00 amid hopes that the government will ease border control soon to boost the tourism industry.

“Despite today’s surge in the Taiex, it remains to be seen whether the main board will challenge the high technical hurdles around 16,000 points soon,” Lin said. “The Taiex’s strength will depend on how the U.S. markets will rebound down the road.”

According to the TWSE, foreign institutional investors bought a net NT$18.17 billion worth of shares on the main board Tuesday.

Source: Focus Taiwan News Channel

Both houses of the United States Congress have made progress on their respective drafts of an annual defense policy bill — the National Defense Authorization Act (NDAA) — that includes provisions to strengthen defense-related engagement with Taiwan.

In the Senate, the Armed Services Committee said last Thursday that it had passed a draft version of the NDAA for Fiscal Year 2023 in a bipartisan 23-3 vote and had sent it to the full Senate for consideration.

According to a summary released by the committee, the draft bill will require engagement with Taiwanese officials to develop and implement a multiyear plan for the acquisition of appropriate defensive capabilities.

It will also mandate engagement with Taiwan on a series of combined training, exercises and planning activities, the committee said.

The U.S.’ policy will be to maintain its armed forces “to deny a fait accompli against Taiwan,” in order to deter China from using military force to unilaterally change the status quo with Taiwan, the committee said in the summary.

The draft Senate bill calls for a total of US$857.6 billion in defense spending, an increase of US$44 billion over the US$813.3 billion requested by President Joe Biden, and it is an increase of US$87 billion from last year’s defense budget.

Meanwhile, the House of Representatives’ Armed Services Committee on Monday released the full text of its draft version of the 2023 NDAA, which is still in the committee’s markup process and will be reviewed on June 22.

In its current form, the House’s draft bill largely hews to the final version of the NDAA that was signed into law last year, with the exception of an expanded “sense of Congress” section on U.S.-Taiwan defense relations.

While the 2022 NDAA commits to supporting Taiwan’s acquisition of defense articles with an emphasis on asymmetric capabilities, the 2023 House draft specifies that this may include “anti-ship, coastal defense, anti-armor, air defense [and] undersea warfare” capabilities.

The section also contains a new phrase that says the U.S. should be “committed to the defense of a free and open society in the face of aggressive efforts by [China] to curtail or influence the free exercise of rights or democratic franchise.”

The current House draft would authorize a lower amount of US$802.4 billion in defense spending.

Typically, both houses of Congress would pass their own versions of the NDAA and negotiate a reconciliation of the bill to be signed into law — a process that in 2022 was not completed until December.

Source: Focus Taiwan News Channel

The Central Epidemic Command Center (CECC) said Tuesday it will distribute 550,000 doses of the Pfizer-BioNTech COVID-19 vaccine for children to local governments on Wednesday for use in an upcoming second-dose rollout.

The vaccine is for children aged 5-11, and local governments will arrange for them to get vaccinated at hospitals or schools, according to Lo Yi-chun (???), deputy head of the CECC’s medical response division.

Lo added that children who were 11 years old when they got their first vaccine dose but will have turned 12 by the time they get their second dose should receive the dosage intended for older children and adults.

However, these children can choose to get their second shot four to eight weeks after their first, as is the recommendation for the 5-11 age group, or opt for the 12-week interval recommended for those 12-17 years old, due to myocarditis concerns.

The Pfizer-BioNTech vaccine for children aged 5-11 contains 10 micrograms of mRNA, compared to 30 micrograms for older children and adults.

Moderna’s vaccine for the 6-11 age group contains 50 micrograms of mRNA, while the vaccine for older children and adults contains 100 micrograms.

The CECC has said previously that the Moderna COVID-19 vaccine will become available for children aged 6 months to 5 years in July, with 450,000 doses expected to arrive in Taiwan early next month.

The CECC is also negotiating a deal to purchase Pfizer-BioNTech’s COVID-19 vaccine for children aged 6 months to 4 years.

Source: Focus Taiwan News Channel

Two shipments of Häagen-Dazs ice cream were recently barred at Taiwan Customs, as they were found to be contaminated with residues of a banned pesticide, the country’s Food and Drug Administration (FDA) said Tuesday.

The two batches of Häagen-Dazs vanilla ice cream, totaling 5,471 kilograms, were found to contain 0.071ppm and 0.072ppm of ethylene oxide, respectively, the FDA said in its latest report on substandard food imports.

As a precautionary measure, General Mills Taiwan, the Häagen-Dazs distributor in Taiwan, has recalled some of its vanilla ice cream products and is offering refunds to retailers and consumers.

The ice cream shipments were among several other food products that were recently rejected at Taiwan Customs because of contamination with either chemicals or heavy metals, the FDA said.

The shipments included 385 kg of chicken flavored cup noodles, imported from Indonesia by Asean VIP International Trading Co., Ltd., which were found to contain 40.542ppm of ethylene oxide, the FDA said.

In light of the fact that the use of the pesticide ethylene oxide is banned in Taiwan, the contaminated food shipments will either be destroyed or returned to the country of origin, Chen Ching-yu (???), head of the FDA’s Northern Center, told CNA.

The FDA’s most recent list of rejected food shipments also included 60 kg of rosemary powder imported from Malaysia by Ko Lily Corp., which contained excessive levels of pesticide residues.

Shipments of frozen marlin from the Seychelles, imported by Golden Sea Management Ltd., and fresh broccoli from Thailand, imported by Tsann Lin Co., Ltd., were rejected because of excessive levels of heavy metals, according to the FDA.

Meanwhile, plastic products imported from China, including cutting boards and boxes, failed a toxicity dissolution test and will either be destroyed or returned, the FDA said.

Source: Focus Taiwan News Channel

Aftershocks are possible in the coming days following a magnitude 6.0 earthquake in Hualien County on Monday morning that was felt across Taiwan, according to a Central Weather Bureau (CWB) official.

Chen Kuo-chang (???), head of the CWB’s Seismological Center, said aftershocks of magnitude 5 or above could occur over the next two days, while shocks of magnitude 4 or above could occur in the next week.

According to the CWB, the epicenter of Monday’s 9:05 a.m. temblor was located in Guangfu Township, 37.7 kilometers south-southwest of Hualien County Hall, at a relatively shallow depth of 6.8 kilometers.

Although located within Taiwan’s East Rift Valley fault zone, the quake occurred along the upper part of the Guangfu fault, where only two magnitude 6-plus earthquakes have been recorded since 1990, Chen said.

This inactivity would have allowed for the buildup of energy, likely contributing to the strength and duration of Monday’s quake, which measured a weak-5 in Hualien on Taiwan’s seven-tier intensity scale, he said.

Chen added that the CWB is still investigating whether the earthquake was directly related to the Guangfu Fault, which is not listed as one of Taiwan’s 36 active fault lines.

So far this year, Taiwan has recorded six earthquakes with magnitudes of 6 or above, putting it well above the average of two or three per year, according to Chen.

Of those, two were determined to be aftershocks of the magnitude 6.7 earthquake that occurred off the coast of Hualien on March 23, he said.

Taiwan recorded a record of 13 magnitude 6-plus earthquakes in 1999, many following in the wake of the deadly magnitude 7.7 quake that struck the country on Sept. 21, he added.

Source: Focus Taiwan News Channel