The shares of chip companies rose after sales in September grew from the previous month, indicating the industry may be poised for a rebound.
Shares in Taiwan Semiconductor Manufacturing Co (TSMC,
Demand for chips that power everything from personal computers and mobile phones to electronic games may have touched an all-time low and is set to rebound, some investors said. TSMC said last month sales would start to recover from the third quarter, while UMC said it expects a revival in the fourth.
``The worst has passed, so they're performing better,'' said Fang Kuo-li, who manages about NT$1.1 billion ($32 million) in stocks, including UMC shares, at First Global Investment Trust Co.
``The fourth quarter will improve from the third.'' TSMC's September sales fell 43 percent on year, although they rose 3 percent from August to NT$9.3 billion. Sales have risen from the previous month since June. UMC's sales rose 8 percent from the previous month to NT$4.2 billion. Sales at ASE fell more than a third on year, but rose 5 percent from August to NT$1.6 billion.
Separately, UMC will receive an order from Micronas Semiconductor Holding AG, the largest Swiss chipmaker, for semiconductors for digital TVs, UMC said in a statement to Taiwan's stock exchange.
Delay Still, the terrorist attacks in the U.S. last month may slow the recovery in chip demand as ebbing global economic growth prompts consumers to delay purchases of electronics products powered by chips, some investors said.
``The chip production process takes about 30 days,'' Fang said. ``The effect of canceled orders following the attack would be felt in October or November.'' Worldwide chip demand may fall as much as 34 percent this year after the attacks, IC Insights Inc. said. The market researcher previously forecast a 27 percent drop, which already would have been the worst year on record, surpassing a 20 percent decline in 1985.
Shares in TSMC rose NT$3.20 to NT$49.20. United Microelectronics Corp. gained NT$1.70 to NT$26.90.
ASE, which cuts silicon wafers from TSMC into chips and packages them in insulating plastic, rose NT$1 to NT$17.
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