Top News
TSMC posts record second-quarter profit
TSMC, the world's largest contract chipmaker and a bellwether of the global industry, said second-quarter profit surged 61 percent from a year earlier to a record US$13.5 billion, beating analysts' estimates, on strong AI chip demand. Revenue rose 39 percent to US$31.7 billion. The Taiwan company's major clients include Nvidia and Apple. TSMC said advanced chips 7-nanometers in size or smaller, which provide greater processing power and efficiency, accounted for almost three-quarters of wafer revenue. Although the company still faces US threats of import tariffs on semiconductors, it predicted revenue in the third quarter will increase 38 percent from a year earlier.
Japan 7-Eleven takeover fizzles
What would have been the largest-ever foreign takeover of a Japanese company collapsed after Canadian retailer Alimentation Couche-Tard withdrew its US$47 billion bid for Seven & i Holdings, which owns 7-Eleven convenience stores. Couche-Tard, which operates 16,700 stores worldwide under its own name and the Circle K brand, said it had proposed acquiring all of Seven & i's business outside of Japan and 40 percent of business inside the country. It accused the target of obfuscation and delay in negotiations, allegations Seven & i denied.
China's Big 3 airlines brace for losses
China's three biggest state-owned airlines are forecasting first-half losses on heightened competition, slower recovery in international flights and a domestic consumer shift to rail travel. Air China's net loss is likely narrow to between 1.7 billion yuan (US$237 million) and 2.2 billion yuan, the Beijing-based carrier said. China Eastern Airlines, based in Shanghai, said it expects a smaller loss of between 1.2 billion yuan-1.6 billion yuan. China Southern Airline forecast its losses will widen to between 1.3 billion yuan and 1.8 billion yuan.
Private airlines, however, are predicting profit growth. China Express Airlines said it expects a minimum 741 percent profit gain to 220 million yuan, while Hainan Airlines said it expects to turn from a loss to a profit of up to 65 million yuan.
Top Business
Japanese exports slump, led by car shipments to US
Japanese exports unexpectedly fell in June fell for a second month, dropping 0.5 percent. Exports to the US declined 11.4 percent as cars, the biggest Japanese export, tumbled 27 percent. Vehicles have borne a 25 percent US tariff since early April. Exports to China, Japan's largest trading partner, slipped almost 5 percent in the month.
Trump-Powell standoff continues
Federal Reserve Chair Jerome Powell rebutted White House claims that a US$2.5 billion renovation of the Fed's Washington headquarters contains irregularities. His letter to the Office of Management and Budget came after that agency's head called the project "ostentatious" and suggested it violates certain government regulations. The issue has moved to the forefront of President Donald's Trump battle to oust Powell because the Fed has refused to lower interest rates. This week Trump backed off earlier claims he is poised to fire Powell, but said that is predicated on not finding evidence of "fraud."
Chinese premier singles out electric cars for price restraint
Chinese Premier Li Qiang called for tighter regulation over prices of electric cars on Wednesday, amid a price war in the sector, Xinhua reported. He urged automakers to exercise greater discipline and improve their competitiveness through technological upgrading.
Economy & Markets
Electric car battery restrictions
The US Commerce Department said it will impose anti-dumping duties of 93.5 percent on anode-grade graphite imported from China. The graphite is a key component of electric-vehicle batteries.
The order affects imports valued at US$347.1 million in 2023, the department said.
Separately, China's Ministry of Commerce and Ministry of Science and Technology renewed the export control catalogue, with restrictions placed on technologies critical for producing electric vehicle batteries. One part of the restrictions involves cathode-production technology used in lithium iron phosphate batteries, widely used in electric cars because of their lower price and greater safety. China dominates that market globally.
MiniMax eyes listing in Hong Kong
Shanghai-based MiniMax, the artificial intelligence start-up backed by Alibaba and Tencent, has applied for an initial public offering in Hong Kong, aiming to raise between HK$4 billion (US$510 million) and HK$5 billion, Reuters reported. The startup has completed five rounds of funding, the most recent a US$300 million investment of venture capital.
Stablecoin bill goes to White House for signature
Legislation known as the Genius Act, which creates a regulatory framework for stablecoins pegged to the US dollar, cleared the US House of Representatives and now goes to President Donald Trump for his signature. Stablecoins are a popular variety of cryptocurrency used to move funds for payments. Two companion bills setting up frameworks for cryptocurrencies are pending Senate approval. One would ban the US from issuing a central bank digital currency.
Shanghai champions RISC-V
Shanghai is sharpening its ambition to become a hub for advanced chip technologies, Vice Mayor Chen Jie said Thursday at the 5th RISC-V Summit in China. RISC-V is a free, open-source instruction set architecture. It was developed by the University of California in 2010 and is maintained by a Swiss-based nonprofit that organizes summits around the world to advance the global ecosystem. Chen said the city is working to build a RISC-V industry covering everything from chip design and manufacture to applications in AI, automotive electronics and smart devices.
US to ban undersea cable hookups using Chinese technology
The US Federal Communications Commission said it plans to adopt rules barring companies from connecting undersea communications cables to the US if they include Chinese technology or equipment. Commission chair Brendan Carr said the measures are to protect national security. A network of more than 400 subsea cables handle 99 percent of international Internet traffic.
Corporate
Geely-owned Volvo reports lower profit, revenue
Volvo Cars, owned by Chinese automaker Geely, reported second-quarter operating profit fell to 2.9 billion Swedish kronor (US$297.8 million) from 8 billion kronor a year earlier. Revenue dropped 8 percent to 93.5 billion kronor. The company, considered one of the European carmakers most exposed to US auto tariffs, said it plans to add its best-selling XC60 sports utility vehicle to the production line of its US car plant in South Carolina.
TCab signs United Arab Emirates deal
Shanghai-based startup TCab Technology signed a US$1 billion deal to supply United Arab Emirates-based Autocraft with 350 of its electric vertical takeoff and landing aircraft. The order, largest of its kind for a Chinese company, is a breakthrough for TCab's overseas expansion plans said Chief Executive Huang Yongwei.
GreatStar scores major European buyer
Hangzhou-based GreatStar Industrial, a maker of hand and power tools, said it has struck a deal with a leading European retailer to market its products. It didn't name the buyer, citing commercial confidentiality. Under the deal, Shenzhen-listed GreatStar will supply cordless lithium battery-powered tools and related accessories to nearly 1,000 of the retailer's outlets across Europe. No value for the deal was announced.
Sanyuan faces US anti-dumping duties
Sanyuan Biotechnology, the world's largest producer of the low-calorie sweetener erythritol, was hit with US anti-dumping duties of nearly 451 percent after a preliminary finding that it was selling at below fair market prices. China is the world's largest producer of erythritol, and Sanyuan dominates up to 35 percent of the global market.