Chunghwa Engineering Faces Major Setback in America, Shakes the Market

In 2022, Taiwan Semiconductor Manufacturing Company (TSMC) held a ceremony for the relocation of its 12-inch wafer fab in Arizona, attended by many tech giants. Chunghwa Engineering (9933) was contracted for this project but has recently come under fire for a significant 19.6 billion TWD debt dispute with BKRF. This has led shareholders to question the company's operational model and market evaluation rigor. One industry insider expressed surprise at Chunghwa's past assessments and history, noting that such a longstanding and experienced company could encounter issues with transactions of this magnitude.
Currently, Chunghwa Engineering operates about 50 affiliated companies and is responsible for the design and construction of large industrial facilities, extending services to high-tech plants and renewable energy projects, with annual revenue reaching 119.9 billion TWD. The ongoing BKRF case has sparked concerns regarding the company's evaluation standards in project contracts.
Chairman Yang Tsung-Hsing stated that Chunghwa holds many ongoing projects and maintains stable cash flow, indicating that its overall operations would not be drastically affected. While this incident serves as a serious warning regarding risk management in international markets, the company remains confident in overcoming current challenges.