Tag Archives: Semiconductors (TRBC level 4)

UPDATE 3-China increases focus on food security in key policy documents | Instant News


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BEIJING, Feb 22 (Reuters) – China will put more pressure on its region to increase grain yields and increase support for its domestic seed industry as it strengthens its focus on food security in the aftermath of the COVID-19 pandemic, a major policy document released late. Sunday shows.

The annual rural policy blueprint, known as “No. 1 document ”, placing more emphasis on food security than in previous years, calls on all provinces to increase grain yields during the 2021-2025 period.

Beijing, which has long prioritized food security for its 1.4 billion people, has strengthened its focus on the issue since the pandemic hit major food exporting countries last year and raised concerns about the stability of food supplies.

“The uncertainty and instability of the external situation has increased significantly. Regarding the safety of the grain, we shouldn’t take it lightly for a second, ”Tang Renjian, the agriculture minister, said at a press conference on Monday, noting that China’s population is still increasing.

The document published by the State Council, China’s cabinet, noted that the communist party committee will also assume responsibility for food safety, in addition to local governments.

China will build a “national food security industrial belt”, he added, a plan also outlined during a major economic policy meeting in December.

The belt aims to connect all of the country’s main grain regions, officials said at the time.

The document also reaffirms new priorities for the seed sector, seen as key to food security, urging the faster implementation of major scientific projects in breeding. It urges “industrial applications of biological breeding,” to use a term that includes, among other things, genetically modified crops.

It also calls for stronger protection of intellectual property rights in breeding, and support for leading seed companies to establish commercial breeding systems.

“It is important to select a group of excellent companies to provide priority support,” Zhang Taolin, deputy agriculture minister, said at the briefing.

Shares of seed companies including Beijing Dabeinong Technology Group Co., Shandong Denghai Seed and Winall Hi-tech Seed Co. all gained about 4% on Monday.

China will also stabilize soybean production and develop vegetable oil crops including rapeseed and peanuts, he said, amid tight global vegetable oil supplies, and will diversify imports of its agricultural products.

He also called for building a modern animal husbandry system and protecting the production capacity of pigs.

Despite recent concerns about a spike in disease during winter, Tang said Monday that China’s herd of pigs will recover to 2017 levels in June, reaching numbers not seen since the African swine fever outbreak.

However, he said the country needed to find ways to make the herd more stable and prevent farmers from slaughtering pigs when prices fell.

Reporting by Hallie Gu, Dominique Patton, Judy Hua and Yew Lun Tian; Edited by Richard Pullin and Jacqueline Wong

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Daimler Germany sees 2021 pandemic recovery boost sales, profits | Instant News


LONDON (Reuters) – Daimler AG expects a significant increase in sales and operating profit by 2021 and will replace lost production caused by a shortage of semiconductor chips by the end of the year, the German carmaker said on Thursday.

The prospect of sending carmaker Mercedes-Benz up 2.5% in early trading.

The bottleneck leading to a shortage of semiconductor chips will cut sales largely in the first quarter, Daimler said. Much of the auto industry has struggled to maintain production levels due to chip shortages.

Chief Executive Ola Källenius said during a video conference that Daimler expects chip supply to increase in the second quarter.

He said Daimler had explained its sales expectations to its suppliers, but did not know until December 31 that they would face shortages in the first quarter.

The carmaker also confirmed preliminary financial results for 2020, saying economic conditions in key markets will return to normal in 2021 and does not expect a further pullback as a result of the pandemic.

Similar to its competitors, Daimler is racing to bring a more electric model to the market to meet tightening CO2 emission standards in Europe and China.

FILE PHOTOS: Ola Kaellenius, chairman of Daimler AG attends a presentation of the new Mercedes-Benz S-Class at the Daimler production plant in Sindelfingen near Stuttgart, Germany, September 2, 2020. REUTERS / Ralph Orlowski / File Photo

CEO Källenius said that sales of electric vehicles by 2021 could double as a percentage of Daimler’s overall sales.

Sales of plug-in and fully electric hybrid vehicles accounted for 7.4% of Mercedes-Benz car sales in 2020, up from 2% in 2019.

Following cost savings and a faster-than-expected recovery in the auto sector, Daimler said last month group revenue before interest and tax (EBIT) for 2020 was 6.60 billion euros ($ 7.95 billion).

This month, it plans to release Daimler Truck, the world’s largest maker of trucks and buses, to increase its investor appeal as a focused luxury and electric car business.

CHINESE ‘INCREDIBLE RESTORATION’

Daimler ended 2020 with an adjusted free cash flow of 9.2 billion euros versus 2.7 billion a year earlier.

Factory shutdowns in the first half of 2020 to slow the spread of the new coronavirus left many in the industry expecting a catastrophic year, but a market rebound fueled by China is helping the industry recover faster than expected.

Like its German rivals BMW and Volkswagen AG, Daimler benefits from China’s demand for high-margin luxury vehicles.

“China is experiencing a tremendous recovery,” said Källenius.

Mercedes-Benz sales in China surged more than 22% in the fourth quarter and 11.7% for 2020 as a whole.

While Daimler said it expects its premium car business to increase by more than 7.5% by 2021, it expects its sales in China to grow at a slower pace of between 2% and 7.5% this year.

Group revenue and operating profit for 2021 are expected to increase by more than 7.5%, with adjusted margins from the Mercedes car and van business between 8% and 10%.

($ 1 = 0.8304 euro)

Reporting By Nick Carey; Edited by Kim Coghill, Keith Weir and Barbara Lewis

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Daimler Germany sees 2021 pandemic recovery boost sales, profits | Instant News


LONDON (Reuters) – Daimler AG expects a significant increase in sales and operating profit by 2021 and will replace lost production caused by a shortage of semiconductor chips by the end of the year, the German carmaker said on Thursday.

FILE PHOTOS: Ola Kaellenius, chairman of Daimler AG attends a presentation of the new Mercedes-Benz S-Class at the Daimler production plant in Sindelfingen near Stuttgart, Germany, September 2, 2020. REUTERS / Ralph Orlowski / File Photo

The prospect of sending carmaker Mercedes-Benz up 2.5% in early trading.

The bottleneck leading to a shortage of semiconductor chips will cut sales largely in the first quarter, Daimler said. Much of the auto industry has struggled to maintain production levels due to chip shortages.

Chief Executive Ola Källenius said during a video conference that Daimler expects chip supply to increase in the second quarter.

He said Daimler had explained its sales expectations to its suppliers, but did not know until December 31 that they would face shortages in the first quarter.

The carmaker also confirmed preliminary financial results for 2020, saying economic conditions in key markets will return to normal in 2021 and does not expect a further pullback as a result of the pandemic.

Similar to its competitors, Daimler is racing to bring a more electric model to the market to meet tightening CO2 emission standards in Europe and China.

CEO Källenius said that sales of electric vehicles by 2021 could double as a percentage of Daimler’s overall sales.

Sales of plug-in and fully electric hybrid vehicles accounted for 7.4% of Mercedes-Benz car sales in 2020, up from 2% in 2019.

Following cost savings and a faster-than-expected recovery in the auto sector, Daimler said last month group revenue before interest and tax (EBIT) for 2020 was 6.60 billion euros ($ 7.95 billion).

This month, it plans to release Daimler Truck, the world’s largest maker of trucks and buses, to increase its investor appeal as a focused luxury and electric car business.

CHINESE ‘INCREDIBLE RESTORATION’

Daimler ended 2020 with an adjusted free cash flow of 9.2 billion euros versus 2.7 billion a year earlier.

Factory shutdowns in the first half of 2020 to slow the spread of the new coronavirus left many in the industry expecting a catastrophic year, but a market rebound fueled by China is helping the industry recover faster than expected.

Like its German rivals BMW and Volkswagen AG, Daimler benefits from China’s demand for high-margin luxury vehicles.

“China is experiencing a tremendous recovery,” said Källenius.

Mercedes-Benz sales in China surged more than 22% in the fourth quarter and 11.7% for 2020 as a whole.

While Daimler said it expects its premium car business to increase by more than 7.5% by 2021, it expects its sales in China to grow at a slower pace of between 2% and 7.5% this year.

Group revenue and operating profit for 2021 are expected to increase by more than 7.5%, with adjusted margins from the Mercedes car and van business between 8% and 10%.

($ 1 = 0.8304 euro)

Reporting By Nick Carey; Edited by Kim Coghill, Keith Weir and Barbara Lewis

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Stellantis extended production shutdowns in Italy due to a shortage of chips | Instant News


MILAN, February 15 (Reuters) – Stellantis has extended to Tuesday a production freeze at its Melfi plant in southern Italy, citing persistent semiconductor shortages.

Automakers around the world have been affected by a shortage of chips used in engine management and driver assistance systems, mostly from Asia, especially Taiwan.

Stellantis said in a statement that it had decided to completely halt activities at the Melfi plant, where it produces Renegade and Compass Jeep and Fiat’s 500X models, on Monday and Tuesday and on February 22-23.

It followed last-minute notifications from suppliers last week that they were unable to supply “electronic devices due to a lack of semiconductors”, he said.

“This confirms the uncertain phase of the current pandemic at a global level, with the consequence of the need to adjust production programs on a daily basis,” said Stellantis.

The Melfi plant had been suspended for the past week, while production at Turin’s Mirafiori facility was frozen for two days the week before.

Stellantis has requested a flexible leave scheme until the end of March for the Melfi plant, which will allow the company to cut production in the coming weeks based on demand prospects and the status of parts supply. (Reporting by Giulio Piovaccari; Editing by Jan Harvey)

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GlobalWafers secures control over German Siltronic | Instant News


BERLIN (Reuters) – GlobalWafers said on Tuesday that its bid for Germany’s Siltronic had been successful, having secured control of a required majority stake with an offer of 4.35 billion euros ($ 5.3 billion).

The Taiwanese firm said it now controls a 50.8% stake in Siltronic, clearing a reduced threshold for control under a better takeover offer made on January 25 that expires on Wednesday.

Separately, the Federal Cartel Office, Germany’s antitrust watchdog, said it had no objections to a deal to make the world’s second-largest silicon wafer maker after Japan’s Shin-Etsu.

Reporting by Douglas Busvine; Edited by Caroline Copley

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