| Prime News | | ![]() | ![]() | FSC Sets High Threshold for New Financial Holding Firms
Taipei, Sept. 14, 2007 (CENS)--The Financial Supervisory Commission (FSC) resolved yesterday (Sept. 13) to set high thresholds of NT$60 billion of paid-in capital and NT$750 billion of assets for establishment of new financial holding firms.
The criteria have been adopted, despite urge by Taiwan Cooperative Bank to lower the minimum level of paid-in capital to NT$50 billion. In addition, new financial holding firms must consist of at least two subsidiaries in the three sectors of banking, insurance, and securities, as well as minimum 10% of capital adequacy ratio for bank, RBC (risk-based capital) ratio of 300% for insurance firm, and 200% of capital adequacy ratio for securities firms.
Of the prospective applicants for setup of new financial holding firms, only Taiwan Financial Holding, with Bank of Taiwan as the flagship entity, will quality, while Taiwan Cooperative Bank and Industrial Bank of Taiwan will both disqualify.
Even half of the existing financial holding firms fail to meet the criteria, including Hua Nan and Shin Kong, with paid-in capital less than NT$60 billion, China Development and Yuanta, with assets under NT$750 billion, and E-Sun, Jih Sun, and Waterland, being flunked on both counts.
Their operations won't be affected by the new criteria, which are not retroactive, but the FSC has asked them to formulate "future development plan," seeking to attain scale or management synergy via own development or merger with other financial holding firms.
Taiwan Financial Holding has delivered application for establishment to the FSC last week and is scheduled to come into being in January next year. Initially, the financial holding firm will consist of Bank of Taiwan, Land Bank of Taiwan, and the Export-Import Bank, ROC, Bank of Taiwan Securities, and Bank of Taiwan Life Insurance. Within one to one and half a year, the Export-Import Bank will be incorporated into the Bank of Taiwan, to be followed by acquisition of Land Bank of Taiwan by Bank of Taiwan in two to three years. Taiwan Financial Holding will boast assets of US$158.8 billion, ranking 89th place worldwide.
Taiwan Cooperative Bank appears determined to set up a financial holding firm, and Hsu Teh-nan, chairman, reported that the bank will carry out capital increment, via both allocation of retained earnings and fresh-capital raising, next year, so that its paid-in capital, at NT$47.7 billion now, can meet the new criteria.
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| | ![]() | | | MOEA Sets R&D Floor for New Medicine Incentives
Taipei, Sept. 14, 2007 (CENS)--In order to enjoy the handsome incentives accorded by the "Statute for Development of the Biotech New Medicine Industry," bio-tech firms must spend at least 5% of their annual turnover, or 10% of paid-in capital, according to the enforcement rules for the statute being drafted by the Ministry of Economic Affairs (MOEA).
The enforcement rules are scheduled to be implemented following its promulgation in October and will remain in force until the end of 2009 following expiration of the existing Statute for Industrial Upgrading.
According to the draft enforcement rules, bio-tech new medicine firms with R&D spending exceeding 10% of paid-in capital or 5% of turnover will be eligible to up to 35% of investment tax credit, even higher than that stipulated in the Statute for Industrial Upgrading. The amount can be deducted from the companies' business incomes taxes in five years' time.
To encourage investments in bio-tech new medicine firms, institutional investors will be eligible to 20% of investment tax credits for holding stakes in those firms for over three years.
Some details for the enforcement rules, however, still remain undecided. The "Statute for Development of the Biotech New Medicine Industry," enacted in July, grants investment tax credits to outlays for R&D and personnel cultivation for the development of new medicines and implanted medical materials.
The Department of Health, under the Executive Yuan (the Cabinet), defines medicines as those featuring new ingredients, new curing formula, or new usages, different from the looser definition of new formats or new dosages offered by the Council of Agriculture. The MOEA will coordinate the difference between the two organizations.
Meanwhile, the MOEA currently confines high-risk medical materials to those meant for implantation or installation in human bodies with original nature, which will be eligible for the tax incentives. Industry insiders, though, urge it to lower the threshold, which they said is very difficult for them to meet.
The MOEA is scheduled to hold several public hearings in the second half of September before finalizing the enforcement rules by mid-October.
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| | ![]() | | | Earnings for CSC, Chung Hung Decline in August
Taipei, Sept. 14, 2007 (CENS)--The price surge in raw materials and freightage has eroded the profit margin of domestic iron and steel firms. China Steel Corp. (CSC) and Chung Hung Steel Corp. saw their August earnings decline from the previous month.
CSC said it registered NT$4.851 billion (US$147 million at US$1:NT$33) in pretax earnings in August, down 7.9% from the preceding month; Chung Hung saw a 14% decline in earnings from core business in the same month.
A CSC executive attributed the earnings decline in August to the surge in shipping costs. The company said it saw an increase of NT$200 (US$6.06) per metric ton in freightage in August.
Although mainland China's BaoSteel Corp. downward adjusted selling prices for its products to be shipped in the fourth quarter of this year, CSC didn't follow suit. Seeing the steel price decline in the mainland, domestic downstream firms are halting procurement of the products. In this situation, CSC and Chung Hung wouldn't see sales growth in September until the advent of a peak season in October and November.
CSC said its customers were still willing to buy steel products because the prices of its products were under the international level. The company shipped 878,800 metric tons of steel products and registered NT$17.596 billion (US$533.21 million at US$1:NT$33) in sales in August, up 3.23% from the preceding month. The company posted NT$134.839 billion (US$4.08 billion) in cumulative sales in the first eight months of this year, up 21.33% year-on-year.
The company had cumulative pretax earnings of NT$41.936 billion (US$1.27 billion) in the first eight months of this year, up 58.42% year-on-year. Based on its current capitalization of NT$114.94 billion (3.48 billion), CSC posted NT$3.65 (US$0.11) in earnings per share in the first eight months of this year.
Chung Hung registered NT$277 million (US$8.39 million) in earnings in August, down 37.2% from the preceding month. After deducting NT$119 million (US$3.6 million) from dividend revenues from CSC, Chung Hung saw a 14% decline in core-business earnings in August from the preceding month. The company posted NT$2.613 billion (US$79.18 million) in cumulative pretax earnings, or NT$2.03 (US$0.06) in EPS, in the first eight months of this year.
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| | ![]() | | | August Consumer Price Index Hit 6-month High in August
Taipei, Sept. 14, 2007 (CENS)--Due to the price surge in leafy vegetables caused by the typhoon flooding, the annual growth rate for consumer price index (CPI) hit 1.59% in August, the highest record in six months, according to statistics compiled by the Cabinet-level Directorate General of Budget, Accounting and Statistics (DGBAS).
Nevertheless, the wholesale price index (WPI) increased by 3.57% in August, marking the lowest increase since May 2006, said DGBAS.
C.M. Wu, director of the third bureau under the DGBAS, said there are no signs of domestic commodity price inflation. He explained that with the era of globalization, market competition is very tough and a cross-board surge in commodity prices won't be easily seen.
Of the items impacted by the August CPI, Chinese herbs surged 62.6% year-on-year in price; milk, 12.03%; and salad oil, 20.67%.
Because of the price hikes of eggs, milk and bread, the prices of consumable products climbed 2.85% in August.
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| | ![]() | | | TSMC to Upgrade to 450mm Production in 2010
Taipei, Sept. 14, 2007 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC), currently the world's No.1 pure silicon-foundry provider, will begin to make chips with 450mm wafer tools in 2012, becoming a 450mm-technology trailblazer along with Intel and Samsung.
John Lin, a TSMC director, disclosed the plan recently at a technology workshop on the sideline of the SEMICON Taiwan 2007, a chip equipment and materials trade show held from Sept. 12 through 14.
Lin pointed out that shifting from chip production on 300mm wafers to the production on 450mm wafers is one of the most efficient measures to boost productivity for chipmakers in addition to continue shrinking chips on 300mm wafers. His statement came in response to comment from an executive of equipment supplier Brooks Automation that before moving to 450mm production chipmakers should optimize the relatively primitive 300mm process as much as possible.
Lin estimated 300mm fabs will dominate chip-making facilities in 2012 by accounting for over 50% of wafer outputs worldwide. In the meantime, 450mm fabs will enter into pilot run.
However, General Director Chan Yi-jen of the Electronics and Optronics Research Laboratories under the government-backed Industrial Technology Research Institute felt that 450mm production will not likely transpire until 2017 and 300mm tools will grow into a chip-making mainstream in 2012.
But some workshop attendees were skeptical about Lin's forecast and said only few chipmakers could afford to build a 450mm factory, which is estimated at US$6-10 billion. No.1 chip equipment and materials supplier Applied Materials' representative at the workshop said the company had not so far had any plan to develop 450mm equipment and 300mm technologies still can be improved.
Taiwan SEMICON 2007 attracts more than 750 exhibitors, the largest ever at the annually held event since it was first held 13 years ago.
According to show organizer SEMI (Semiconductor Equipment and Materials International), Taiwan is expected to become the second-largest market for semiconductor and materials, with combined investment of US$16.6 billion in 2007, second only to Japan. Last quarter alone, the Taiwan investments totaled US$5 billion.
SEMI President and Chief Executive Officer (CEO) Stanly T. Myers noted that Taiwan currently has the largest number of 300mm capacity and that global 300mm capacity is growing steadily, with an expected 59% increase this year and forecast 28% growth next year.
Myers pointed out that semiconductor manufacturing industry is in a state of significant change, as much more emphasis is placed on consumer products as key drivers behind demand for new semiconductor devices. He added that today much of the leading-edge process technology is being driven by advanced memory applications, which is forcing change in manufacturing techniques.
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| | ![]() | | | Lite-On IT Wins Orders From China for Car Optic Disk Players
Taipei, Sept. 14, 2007 (CENS)--Lite-On IT Corp. recently landed orders from mainland China for optic-disk players used on cars, suggesting the company's acquisition of Philips' car optic-disk business unit begins paying off.
The company will begin shipping the wares in the first quarter next year. Industry watchers estimated car optic disk business to increase to account for 20% of the company's revenue by the end of this year from current 15% with new customers signed up.
According to a study recently released by the government-backed Industrial Technology Research Institute (ITRI), global market of automotive electronics will approach US$113.4 billion next year in terms of revenue, making it a future stellar industry. The Hon Hai Group and the Lite-On Group are upbeat about the lucrative market and have geared up for entry into the market, with Lite-On having developed stronger presence than Hon Hai on the market.
Lite-On's automotive-electronics affiliate Lite-On Automotive Corp. has developed its presence in automotive-electronics for many years and set up close ties with carmakers. The company has expanded its presence in the market since acquiring Philips' automotive optic-disk operation.
It is understood that Philips' automotive optic-disk business had bagged up to 40% of European market for the products before the acquisition deal.
In addition to Lite-On Automotive, Lite-On has Actron Technology Corp. and Silitech Technology Corp. make some crucial electronics components for cars, showing its extensive presence in automotive-electronics industry.
Institutional investors forecast the company's revenue for the third quarter to increase 25% from the second quarter to NT$15.6 billion (US$472 million at US$1:NT$33), and its after-tax income for this quarter to cross NT$800 million (US$24 million), surpassing the total recorded in the first half this year. In the second quarter, the company had total revenue of NT$12.5 billion (US$378 million).
The company reported earnings of only NT$0.93 per share for last year as a result of slack business. Recovering business allowed it to make NT$0.92 per share in the first half this year alone.
In August, the company had consolidated revenue of NT$5.12 billion (US$155 million), soaring 61.88% from the same month of last year. With a combination of advantages including increased shipments of DVD burners, optic-disk players for XBOX360 game consoles and automotive optic-disk players, the company has forecast its revenue for this month to hit another high.
Throughout the first eight months this year, the company had total consolidated revenue of NT$34.2 billion (US$1.03 billion), increasing 13.57% year on year.
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| | ![]() | | | Notebook PC LED Backlight to Enjoy Bigger Presence
Taipei, Sept. 14, 2007 (CENS)--Both Macquarie Securities and Credit Suisse Securities recently pointed out from Japan that the penetration rate of LED backlight in notebook PC application had reached 15% in the global market and 30% in Japan, according to industry sources.
The two securities firms noted that the newly released penetration rates are higher than most institutional investors' expectations and the LED backlight is becoming increasingly popular in large-size display market.
Amid the growth trend, Macquarie Securities and Credit Suisse Securities are optimistic about the stock prices of major LED makers in Japan and some key players in Taiwan.
According to Credit Suisse, 32 of 215, or 15%, notebook PC models pushed by 12 global brands in the second half of the year have adopted LED backlights, higher than most previous expectations.
Most models adopt LED backlight modules bearing Japanese brands, especially Fujitsu, Toshiba, and Sony, with the three adopting LED-backlights in their notebook PCs totaling 72%, 28%, and 19%, respectively. The global rate is expected to further rise, Credit Suisse said, as big brands such as HP plans to push at least two LED-backlight notebook PCs in the third quarter.
Macquarie noted that the LED backlight is poised to win higher popularity to be used in larger-screen notebook PCs. For example, Fujitsu plans to soon push a LED-backlight model with 14.1-inch display, compared with 13.3-inch of its predecessor.
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| | ![]() | | | Peak Season Effect Raises TFT-LCD Panel Shipments
Taipei, Sept. 14, 2007 (CENS)--With the coming of the peak season, the shipment volumes of both the top-two thin film transistor-liquid crystal display (TFT-LCD) panel makers in Taiwan, AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO), arte expected to hit record monthly highs.
A senior researcher of Witsview Technology Corp., a leading LCD market research firm, pointed out that the coming extended October holiday in mainland China and the Christmas peak season in western nations would generate strong demand for LCD TV panels in September and October. Some of Taiwan's TFT-LCD makers have chosen to airship panels to customers in recent months (compared with surface delivery before) so as to meet urgent orders.
He said that shipments of major local LCD TV panel makers, such as AUO and CMO, are expected to continuously hit record monthly revenues and shipment volumes in September and October.
The 32-inch TV panel is the hottest product now, and supply of which has suffered a shortfall of 10% to 20%. Even Sony has pushed budget-price 32-inch LCD TV models so as to grab lucrative opportunities in the market segment, he said.
According to the Witsview researcher, the 32-inch panel unit price is expected to climb by US$5 in September to US$235. He explained that the prices of 32-inch TVs have been affordable in not only Europe and the U.S. but also some emerging markets such as mainland China etc., leading to strong demands worldwide and supply shortage of 32-inch TV panels.
The demand for 37- and 42-inch TV panels is also very strong, enabling the unit price of 37-inch panels to stay at a stable level and that of 42-inch products to drop only US$5 each this month.
In addition to TV panels, the shipments of monitor and notebook PC panels are also increasing.
In September, thanks to the strong demands, the prices of monitor panels are expected to rise US$3 to US$5 each, and among all sizes the traditional 17-inch and wide-format 22-inch products are expected to enjoy the highest price increases.
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| | ![]() | | | Taiwan Forecast to See 18% Fewer People or Sub-20 M. in 2050
Taipei, Sept. 14, 2007 (CENS)--Due to the declining birth rate, Taiwan's population is ranked 49th globally this year, down two positions from 47th recorded in 2000 and Taiwan's population is forecast to drop 18% to less than 20 million by 2050, according to the Cabinet-level Council for Economic Planning and Development (CEPD).
Taiwan's projected population decline by 2050 will be the highest among Asia's four little dragons and the second highest in Asia, next only to Japan. CEPD, cited the information released by the U.S. government, indicated that the world's population has reached 6.6 billion so far this year, increasing by 70 million from a year earlier. India and Nigeria each has boasted an increase of 10 million persons, the highest among 208 countries in the world, followed by China with a rise of 7 million. In the same year, Taiwan witnessed a slight growth of 77,000 persons or 0.3%, far low than the world's average corresponding percentage of 1.2%.
CEPD officials explained that changes in social concept and human behavior have in recent years discouraged young couples to give births, which seems to have become a trend around the world. From 2007 to 2050, many countries in the world are expected to see falling populations; in Europe, Germany and Portugal are estimated to see their population shrink by 13% each during the period, and Italy, Greece, and Spain are forecast to see a modest drop of 6%, 4%, and 3%, respectively.
Japan is predicted to have a sharp fall of 26% in population in the same period, the highest among the nations in Asia. Taiwan and Korea are estimated to follow with projected corresponding percentages of 18% and 13%. On the contrary, Singapore and Hong Kong are expected to see a sharp rise of 13% and 25%, respectively.
CEPD statistics showed that Taiwan's population already totals 22.9 million this year. However, the figure is estimated to see negative growth starting in 2019 and the population is predicted to shrink to 18.9 million in 2050. CEPD analyzed that Taiwan's population would not only drop in volume in the next 43 years, but would also change in age structure. The proportion of seniors is estimated to grow to 36.7% in 2050 from 2007's 10.1%, which means that the island will see four elderly people in every 10 persons.
In 2050 India is expected to see its population balloon to 1.75 billion, leading the world and outpacing China's corresponding 1.44 billion. In the same year, the United States will witness its population increase by more than 100 million to 420 million.
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| | ![]() | | | Taiwan Outpaces S. Korea in PPP-based Per Capita GNP for 2006
Taipei, Sept. 14, 2007 (CENS)--Last year Taiwan's per capita GNP, based on purchasing power parity (PPP), grew to US$30,000, the world's 21st highest and outpacing the rival South Korea, the Cabinet-level Council for Economic Planning and Development (CEPD) cited the latest information released by the World Bank as indicating recently.
In 2005 Taiwan's per capita GNP was outstripped by that of S. Korea for the first time and a year later S. Korea's GNP rose rapidly to US$18,000, higher than Taiwan's by US$2,000. However, if based on PPP, Taiwan's per capita GNP should be US$30,000 in 2006, about US$6,000 higher than the corresponding figure of US$24,000 recorded by S. Korea.
Last year Hong Kong's per capita GNP, based on PPP, was US$38,000, the highest among the Asia's four little dragons and ranking the fifth in the world. Singapore followed with US$32,000, taking the 19th place. In the same year, Japan's per capita GNP stood at US$34,000, but if based on PPP, the figure would shrink to US$33,000. In contrast, China's per capita GNP was merely US$2,000, which, however, would jump to US$7,700 if based on PPP.
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| | ![]() | | | Acer Remains No. 1 in Taiwan's NB PC Market in Q2
Taipei, Sept. 2007 (CNES)--Taiwan's Acer Inc., one of the world's leading suppliers of PCs, commanded a 20% share in terms of compound shipment of desktop PCs and notebook PCs to hold its leading position in the Taiwanese market in the second quarter of this year, trailed by ASUSTeK Computer Inc. with an 18% share, according to statistics complied by Taiwan's International Data Corp (IDC).
In the second quarter, shipment of desktop PCs and notebook models amounted to 588,000 units, growing 12% from a quarter earlier, in the Taiwanese market. In terms of shipment of desktop models alone, Acer commanded an 18% share of the market to beat ASUSTeK's 10% share; in notebook models, however, ASUSTeK controlled 37% of the market, outpacing Acer's 25%.
According to a report by IDC, sales of notebook PCs in the Taiwanese market amounted to 182,000 units in the second quarter of the year, up 22% from a quarter earlier. Market analysts noted that with consumers gradually inclining to accept Microsoft's new operating system Vista, as well as suppliers starting to provide alternative solutions in operating systems in notebook PCs for consumers, demand for the products has rebounded in the market.
Although Central Trust of China's 12th tender for PCs has yet to be conducted as the Legislative Yuan hasn't approved the general budget bill; however, corporate demand for notebook PCs has been simmering, making the overall market demand in the second quarter grow by 1% from a year earlier.
IDC indicated that there is also a change of notebook PCs' spec. and prices in the Taiwanese market. A selling price of a 12-inch, thin, lightweight notebook PC, for example, has declined more sharply than that of a mainstream model, such as 14- or 15-inch model. With ASUSTeK and Acer ranking as top two brands in the market, HP and Lenovo came third and fourth, respectively, in the quarter.
On other hand, shipment of desktop models totaled 406,000 units in the second quarter of 2007, up 8% from a quarter earlier but slightly down 1% from a year earlier.
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| | ![]() | | | Hon Hai Precision to Deliver PS3 Consoles to Sony
Taipei, Sept. 14, 2007 (CENS)--Hon Hai Precision Industry Co., Ltd., one of the world's leading manufacturers on electronic manufacturing service (EMS) basis, recently joined Sony's supply chain to deliver Play Station 3 (PS3) consoles, according to industry sources.
The sources noted that Sony has set a shipment goal of 10 million PS3 consoles for the first quarter of 2008. This means fierce competition in the global market for game consoles and will lead to a boom in the sector making consumer electronics.
Hon Hai Precision reported sales revenue of NT$100.3 billion in August. This was its first time to break the NT$100 billion mark, and the firm has become Taiwan's first single enterprise to exceed such a major milestone in single-month revenue. Such an achievement by Hon Hai Precision was due partly to a booming season boosting sales and partly to Sony's hot-selling Play Station 2 console.
Insiders in the sector said that Sony has cut the selling price of PS3 consoles, and, at the mean time, planned to launch low-price models, with ASUSTeK Computer Inc. and Hon Hai Precision to supply the models.
Since Sony launched PS3 consoles in the fourth quarter of last year, ASUSTeK has been Sony's sole supplier of the products. However, ASUSTeK hasn't profited from that as the selling price of the product is too high. As a result, somehow, the company saw its sale revenue sharply slip to NT$136.7 billion for the second quarter from NT$222.5 billion posted in the first quarter.
Institutional investors opined that Sony has been aggressively deploying further operations in the global market for game consoles, and therefore added Hon Hai Precision on its supplier list, attempting to compete against Nintendo and Microsoft, which have competing models of Wii and Xbox, respectively. Thus, it is inevitable to see ruthless underselling competition in the market.
On the other hand, ASUSTeK posted sales revenue of NT$51 billion in August, up 10% from NT$45.9 billion posted in July. But, aided by Sony's ongoing orders for game consoles, ASUSTeK is expected to post a 30% growth in sales revenue for September.
Noteworthy is that although losing its leading position to Nintendo in the competition between its PS3 and Nintendo's Wii, Sony still sees its PS2 consoles, which have been launched for seven years, remain hot-selling in the world. This will continue to drive up revenues for Hon Hai Precision and ASUSTeK for the second half of this year.
Accordingly, sales of PS2 consoles has amounted to 100 million units worldwide since the products' launch in 2000, with the shelf life of such products expected to last at least three to four years.
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| | ![]() | | | Taiwan Sees Expanding Gap Between Rich and Poor
The income gap between Taiwan's richest and poorest households narrowed slightly to 6.01 times in 2006, compared with 6.04 times the year before, according to statistics recently released by the Cabinet-level Directorate General of Budget, Accounting & Statistics (DGBAS). The general trend, however, is toward a widening of the gap.
When the government's welfare subsidies are discounted, the rich-poor gap widens to 7.46 times, a four-year high. Hsu Chang-yao, director general of DGBAS, explains that the gap between rich and poor is expanding all over the world, and Taiwan is simply reflecting that trend.
Last year Taiwan's average household income stood at NT$1.1 million (US$33,333.33 at US$1 = NT$33), equal to NT$322,580 (US$9,775.15) per capita based on an average of 3.41 persons per household. Taking income taxes into consideration, each household commanded discretionary spending of NT$913,000 (US$27,666.7) and each person had NT$22,312 (US$676.12) per month.
Dividing the island's households into five categories according to annual earnings, Taiwan had 1.46 million households in the highest-income 20% of the population. These households had an average income of NT$1.827 million (US$55,363.64) last year, while the lowest-income 20% earned just NT$304,000 (US$9,212.12) per household.
The government spent NT$250 billion (US$7.58 billion) on social welfare in 2006, including subsidies for extremely low-income households, those above 65 years of age, old farmers, the physically and mentally handicapped, and victims of natural disasters. This helped to narrow the gap between the rich and the poor.
DGBAS statistics show that last year Taiwan had 925,170 persons with an annual income of more than NT$1 million (US$30,303), an increase of 69,053 persons from the previous year—the largest rise in six years. On the other hand, those with annual income of less than NT$200,000 (US$6,060.6) rose by 34,832 persons, to 1,222,850. Economists say that the graph of Taiwan's income structure is gradually forming into an 'M' shape, with the two peaks of the 'M' getting taller and middle trough, which represents the middle-income group, getting deeper. This means that relative to each other, the rich are getting richer and the poor are getting poorer.
The statistics also show that Taiwan's rich people live mainly in the north of the island while the poor reside in the south. Taipei and Hsinchu, both northern cities, boasted the highest household incomes last year, averaging NT$879,908 (US$26,664) and NT$773,629 (US$23,443), respectively. Taichung City in central Taiwan recorded the third highest household income, at NT$705,336 (US$21,374). The three lowest-income areas were all in southern Taiwan: Chiayi County, Kaohsiung County, and Tainan County, each with household incomes below NT$500,000 (US$15,152).
A survey carried out by the Asian Development Bank (ADB) shows that 15 (mostly Asian) of the 21 countries and areas covered have experienced a widening gap over the past decade. The five countries with the largest increase were, in descending order, Nepal, China, Cambodia, India, and South Korea. Taiwan ranked the sixth on the list.
A senior DGBAS official points out that one of the major sources of income for Taiwan's rich is stock dividends and interest, which often account for half of the income of a rich family. Rich parents usually keep their stocks in the names of their children to evade taxes, and in the process help create a young rich generation. In addition, young professionals working at Taiwan's thriving high-tech industries have often been made rich by the shares they receive as bonuses. These are the so-called 'high-tech' millionaires.
While Taipei residents boast the highest incomes in Taiwan, they also pay the most for housing. Last year the average price of 33-ping (1 ping = 36 sq/ft) residence in Taipei was estimated at NT$11.68 million (US$353,939.4), about nine times the average annual income of the city's residents. This means that a Taipei resident has to save all of his salary for nine full years to pay for his or her apartment.
The number of years of work required to pay for an apartment was much less in other areas: 6.7 years in Taichung City, 6.6 in Taipei County, 6.0 in Tainan City, 5.1 in Kaohsiung City, 4.7 in Taoyuan County, and 4.4 in Hsinchu City. (JL, August 2007)
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