Export worries hit stocks, TSMC and VIA lead drop

Stocks fell, led by exporters such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after the Ministry of Economic Affairs said on Tuesday that the nation's export orders rose 11 percent in June from a year earlier, less than May's 14.3 percent gain as US customers cut demand.

"If the US economy falters, Taiwan's market won't be so strong," said James Lin, who manages NT$600 million (US$18 million) in stock at Union Securities Investment Trust Corp (聯邦投信).

The TAIEX dropped 119.75, or 2.3 percent, to 5039.48 as more than five stocks fell for every two that rose. The total value of trade was NT$65.3 billion.

TSMC fell NT$3.50, or 5.7 percent, to NT$58.50 after its US-traded shares dropped 4.4 percent to US$10.71.

Ali Corp (揚智) tumbled NT$4, or 6.7 percent, to NT$56 after a newspaper report which said the chipset designer expects business in the computer and consumer electronics industry to fall in the third quarter from the second.

Ambit Microsystems Corp (國電) fell NT$5, or 5.1 percent, to NT$93.50. The modem and power-unit maker said second-quarter profit margins fell.

Nanya Technology Corp (南亞科技) fell NT$1.10, or 3.1 percent to NT$34.50 as falling chip prices cuts earnings.

VIA Technologies Inc (威盛電子) fell NT$2.50, or 3.5 percent, to NT$69 on news that Intel Corp plans to trim computer-chip prices in the next several weeks. Via makes chips that work with Advanced Micro Devices Inc.