Connect with us

Business

Chipmaking Hub Taiwan to be Hit by Power-Price Hikes From April

Published

on


Chipmaking hub Taiwan will be hit by higher electricity rates starting April 1, a move that’s set to impact large industrial users the most and will likely spur inflation.

HT Image
HT Image

Internet data centers and large scale industrial users, which include the likes of chip giant Taiwan Semiconductor Manufacturing Co., will see their power tariffs jump by between 15% and 25%, depending on usage. The statement did not specify exactly how large an increase TSMC will face. Household users will face a increase between 3% and 10%.

Hindustan Times – your fastest source for breaking news! Read now.

A rise of less than 30% will have limited impact on TSMC, Charles Shum, Bloomberg Intelligence technology analyst, said in a report earlier this month. Yet, increasingly expensive electricity in Taiwan could pose a long-term threat to the company’s profitability, he said.

The hikes come after the island’s state-owned utility Taiwan Power Co. announced a second consecutive annual loss of NT$198.5 billion in 2023, following an even greater shortfall in 2022 as it attempted to keep power prices low despite rising fuel costs. The utility’s total losses amounted to NT$382.6 billion in 2023, a downward trend that is expected to continue this year.

Taiwan’s central bank unexpectedly raised borrowing costs and upgraded its inflation forecast to 2.16% from its previous estimate of 1.89% to factor in the new tariffs on Thursday, while the central bank governor Yang Chin-long told lawmakers earlier this month that higher power prices may further inflate already stubbornly high consumer prices.

A 15% increase in electricity tariffs could result in a 12% rise in power cost for Vanguard International Semiconductor Corporation, Chairman Fang Leuh told reporters on Friday before the price rise was announced, adding that he was unable to answer yet if costs could be passed on to customers.

Taiwan is largely reliant on imported coal and natural gas, the prices of which surged following Russia’s invasion of Ukraine. Technologies such as offshore wind, which the island is betting on to diversify its energy mix, are dealing with rising costs and increasing delays.

Read More: Taiwan’s Troubled Utility Poses Risk to Chipmakers’ Green Goals

Higher power tariffs are “essential for industrial development” Thomas Wu, chairman of the Chinese National Association of Industry and Commerce told reporters on Wednesday. “Industries hope there will be stable and sufficient power supply and green energy supply.”

Taipower raised electricity prices by an average of 11% last year, with the hikes mainly affecting industrial and residential users who consumed large amounts of electricity.

With assistance from Chien-Hua Wan.

This article was generated from an automated news agency feed without modifications to text.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Nikhil Kamath alerts investors on ‘hand-picked stocks’ WhatsApp scam: ‘Use common sense’

Published

on

By


Zerodha co-founder Nikhil Kamath informed investors that he has never had any WhatsApp group where he shares “hand-picked” stocks as advertised by a group. The group claims to assist people in picking the right stocks and Nikhil Kamath said that “this is obviously not from me” as he urged people to use a little “common sense”.

Zerodha co-founder Nikhil Kamath alerted investors about a scam on Whatsapp.
Zerodha co-founder Nikhil Kamath alerted investors about a scam on Whatsapp.

“Scam alert, this is obviously not from me, I have never had or have any WhatsApp groups, nor do I give tips etc. Please report these… Also to all the brands who reach out, I don’t do paid promotions/collaborations/ads/paid speaking engagements of any kind. Please stop spamming, and everyone use a little common sense please,” he said along with an image of the fake advertisement.

Unlock exclusive access to the story of India’s general elections, only on the HT App. Download Now!

What did the scam advertisement claim?

The scam advertisement showed that the WhatsApp group had details of stocks handpicked by Nikhil Kamath that would rise in April. The ad asked investors to join the WhatsApp group which would share their picks of reliable stocks every day as it said, “First 1,000 members get it for free.”

See Nikhil Kamath’s post here:

Earlier Nikhil Kamath advised fellow entrepreneurs in India to not open franchises of global brands in India but try to take Indian brands to the world.

He said, “To all my entrepreneur buddies, the future may be to take Indian brands global, not franchise global brands in India. The Indian narrative is getting cool globally, we have mystique, royalty, history, artisan, handmade, exotic, and so much more to sell.”

He added, “What was yesterday a garment manufactured in India called John, Peter and Louis something and marketed by western models, could be tom Subko, Hatti Kaapi, 11.11 etc sold in New York with the faces of Indian artisans who spent hours on each product individually.”



Source link

Continue Reading

Business

RBI ban on Bank of Baroda World app: Finance ministry’s likely plan on frauds

Published

on

By


Union finance ministry may propose stricter measures to protect citizens from cyber fraud, it was reported. This comes after an increase in incidents of frauds, including the Bank of Baroda World app scam, the Times of India reported citing sources who “mentioned a recent inter-ministerial meeting focused on bolstering cybersecurity and tackling financial fraud”, it noted.

A security official walks past an emblem of the Reserve Bank of India at the RBI headquarters, in Mumbai.
A security official walks past an emblem of the Reserve Bank of India at the RBI headquarters, in Mumbai.

What was RBI’s action on Bank of Baroda World app?

In October 2023, the Reserve Bank of India (RBI) stopped Bank of Baroda from onboarding new customers on its mobile app ‘BoB World’ citing material supervisory concerns. The bank said in response that it had already carried out corrective measures to address the concerns.

Unlock exclusive access to the story of India’s general elections, only on the HT App. Download Now!

“The Reserve Bank of India has, in exercise of its power, under Section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application,” RBI said in a statement.

“Any further onboarding of customers of the bank on the ‘bob World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI,” it added.

What report said on steps Finance Ministry could take?

The report claimed that Finance ministry could be in support of stricter Know Your Customer (KYC) procedures and due diligence by banks and financial institutions while onboarding new merchants. This applies to Business Correspondents (BCs) as they may be more vulnerable to security breaches, as per the report.

Additionally, the ministry’s proposal also stresses on the need for improved data security and data protection practices at the merchant and Business Correspondents level. The report claimed that the RBI may ask banks to review concentration of Business Correspondents in areas with a high incidence of cyber fraud.



Source link

Continue Reading

Business

Sakuma Exports shares to trade ex-rights today: Check price, allotment, ratio here

Published

on

By


Sakuma Exports rights issue 2024: The rights issue of Sakuma Exports Ltd will open on April 25 and will close on May 13. The rights issue record date is April 15 and the company will offer 78,984,298 equity shares at a price 25.3 per share. The issue size is 199.83 crores while the entitlement ratio is 33:98 which means 33 rights share for every 98 fully-paid equity shares held on the record date.

Sakuma Exports rights issue 2024: The rights issue record date is April 15 and the company will offer 78,984,298 equity shares at a price <span class=
Sakuma Exports rights issue 2024: The rights issue record date is April 15 and the company will offer 78,984,298 equity shares at a price 25.3 per share.

Sakuma Exports: What is rights issue?

In the rights issue, a company grants existing shareholders the right to buy new shares at a discount to the current trading price. The issue gives existing shareholders securities called rights while companies give shareholders a chance to increase their exposure to the stock at a discount price.

Unlock exclusive access to the story of India’s general elections, only on the HT App. Download Now!

Sakuma Exports: What to expect?

The Board of Directors of the company declared rights issue of equity shares for the eligible shareholders and said in a stock exchange filing that “the issue of 7,89,84,298 equity shares of face value of Re. 1 each (Equity Shares) to Eligible Equity Shareholders aggregating up to Rs. 19983.03 lakhs in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (SEBI ICDR Regulations).”

“The Board of Directors, in accordance with Regulations 30 and Regulation 42 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, as amended and Regulation 68 of the SEBI ICDR Regulations, at its meeting held today ie., April 8, 2024, has considered and approved April 15, 2024 as the record date for the purpose of determining the Eligible Equity Shareholders who are eligible to apply for the Rights Equity Shares, in the Issue (Record Date),” it added.



Source link

Continue Reading

Trending