Fri, Jul 12, 2002 - Page 11 News List

TAIEX falls; MediaTek, Catcher Technology drop

BLOOMBERG , TAIPEI

Taiwan's TWSE Index fell for a second day, led by MediaTek Inc (聯發科技), after a local newspaper reported the chip designer had to apologize to a customer for seeking information in a lawsuit.

MediaTek fell NT$30, or 6.9 percent, to NT$408 while the TAIEX dropped 59.42, or 1.1 percent, to 5202.59.

Within the index, more than two stocks fell for every one that rose. The total value of trade was NT$63.64 billion (US$1.9 billion).

MediaTek has filed a lawsuit against rival VIA Technologies Inc (威盛電子) for violating its DVD chip patents. Last week inspectors sought information from Benq Corp (明基電通), the nation's largest mobile-phone maker, about MediaTek chips Benq is using in its DVD players.

"This kind of action, investigating one's customers in a patent-violation case, is very rare," said Yao Ke-min, a semiconductors analyst at Fubon Securities Co (富邦證券). "It may reveal to what extent MediaTek sees VIA as a threat and the price pressure it's facing." VIA shares rose NT$1.50, or 2 percent, to NT$77.50.

Catcher Technology Co (可成科技) tumbled NT$5.50, or 6.9 percent, to NT$74 after the maker of metal parts used in notebook computers and mobile phones for customers such as Quanta Computer Inc (廣達電腦) reported sales in June fell 19 percent from the previous month to NT$111.5 million, the lowest this year.

Compal Electronics Inc (仁寶電腦) rose NT$0.60, or 2 percent, to NT$31.30 after Taiwan's second-largest computer maker said June sales rose more than two-fifths from a year earlier to NT$9.3 billion.

Formosa Plastics Corp (台塑), Taiwan's biggest petrochemical firm, rose NT$1.70, or 4.1 percent, to NT$43.40 on optimism chemical prices will rise, boosting profits.

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