Google will double its investment in a new data centre it is building in Taiwan as internet use in Asia rockets beyond what the US internet group predicted a few years ago when it first planned the site, one of its first two data centres in Asia.
The search company already invested $300m in the massive centre on a flat plain outside a city in central Taiwan, and says it will double that in the next stages of the data centre’s development.
Acer, the Taiwanese computer company, has struggled for a while to sell enough computers to stay profitable, but investors still found room for disappointment in its most recent results.
Shares were down nearly 4 per cent in Taipei today after management spoke with analysts and the media to explain its second quarter operating loss of NT$613m and its 19 per cent year on year fall in revenue to NT$89.4bn.
Could Google become one of the beneficiaries of improving ties between Taiwan and China?
The US internet company on Tuesday began construction of its own data center in central Taiwan, one of three that it is building in Asia, after Hong Kong and Singapore. The groundbreaking comes just a week after the Taiwan government approved the construction of the first-ever undersea cable directly linking China and Taiwan.
Are the seeds already being sown for the next technology down cycle? Prospects of a downturn seem remote, given how strong demand for consumer electronics, PCs, and smartphones remain, and how major tech manufacturers are looking forward to a second wave of demand from long-suppressed corporate IT spending.
A new report by Standard and Poors, however, warns that profitability of Taiwanese technology companies may weaken after this year given their aggressive capacity expansion plans.
The way is finally clear for the first formal tie-up between a Taiwanese and a Chinese chipmaker. Taiwan’s government on Monday gave approval for Taiwan Semiconductor Manufacturing, the world’s biggest contract chipmaker, to take a 7.4 per cent stake in China’s Semiconductor Manufacturing International, China’s biggest chipmaker by capacity.
The story of how SMIC was founded a decade ago by Richard Chang, a former senior TSMC executive, and how the two companies later became embroiled in a long-running trade secrets battle, is an interesting and revealing tale about China’s (largely failed) efforts to create a domestic chipmaking industry.