Taiwan

Sarah Mishkin

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. Read more

Sarah Mishkin

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. Read more

Just a few weeks ago, Foxconn was apologising profusely for poor performance as rival contract manufacturer Pegatron was riding high on reports that it had won out over Foxconn, Apple’s main manufacturer, for a contract to make Apple’s upcoming cheaper version of its iPhone.

Things have changed. Now it’s Pegatron’s shares that are falling, battered by local reports that it is will not get as many orders as initially forecast, with Foxconn getting them instead.

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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. Read more

Tech news from around the web:

British billionaire Sir Richard Branson has made a ‘multimillion-dollar’ investment in mobile payment start-up company Square, a spokesperson for the company has told Reuters. The move  follows a $100m investment led by venture capital firm Kleiner Perkins Caufield & Byers and an injection by credit card company Visa.

Adobe Systems is said to be scrapping its move to bring its Flash Player software to smartphones and tablets, CNET reports. The Flash browser plug-in is widely used on personal computers but has so far only reached a fraction of the mobile phone market.  Read more

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.  Read more

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.

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  • Faced with industry-wide overcapacity, Taiwan announced it was restructuring the nation’s memory chip companies and creating a new government-backed group. The move comes two days after AMD and Abu Dhabi investors created a new company to take on the Taiwanese. Demand for chips is falling precipitously as consumers and companies cut spending on computers, cameras and mobile phones.
  • Although there is evidence that gamers are growing tired of music games such as Activison‘s Guitar Hero, one title may revive the genre. “The Beatles: Rock Band” will ship in September, and is an almost guaranteed blockbuster for the companies behind Rock Band, which include Electronic Arts, Viacom‘s MTV and Harmonix. The Beatles, who have sold more than 600m albums worldwide, have rarely licensed their music.

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