Taiwan stocks fall, led by TSMC after Intel disappoints

The TAIEX fell for a third day after Intel Corp said second-quarter sales were below analysts' forecasts and it sees no signs of a recovery in its business. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) fell NT$2, or 2.9 percent, to NT$67. Intel also said it will cut 4,000 jobs and trim projected spending on new equipment until sales improve.

"That's negative for a market that had expected a recovery in the second half," said Darwin Chang (張達文), who manages NT$570 million (US$17 million) in stocks at Reliance Securities Investment Trust Co (德信證券投信). "We'll revise down our profit estimates for electronics stocks."

Stocks also fell after local media reports that the Securities and Futures Commission is investigating technology companies' accounts for cross-selling between units, inflated sales and using inadequate inventory reports to boost profits.

The TAIEX shed 67.19, or 1.3 percent, to 5,250.82 as almost two stocks fell for every one that rose. The total value of trade was NT$56.22 billion (US$1.7 billion).

Quanta Computer Inc (廣達電腦) fell NT$2.50, or 3 percent, to NT$82. Apple Computer Inc expects fourth-quarter sales to be little changed from the previous quarter. Shipments of the flat-panel iMac dropped to 173,000 in the three months to June 30, from 220,000 in the previous quarter. Quanta makes the flat-panel iMac for Apple.

Nanya Technology Corp (南亞科技) fell NT$0.70, or 1.8 percent, to NT$38 as investors bet a rise in chip prices may slow, damping earnings growth at the nation's largest maker of computer-memory chips by market value.