Stocks fall as chipmakers cut their profit forecasts

Taiwan stocks fell, paced by electronics companies such as Taiwan Semiconductor Manufacturing Co (台積電) after other chipmakers cut profit forecasts because demand has been poorer than expected.

"Some people are worried about earnings forecasts," said Simon Chao, who manages US$24 million in stocks at President Investment Trust Corp

The TWSE Index fell 32.93, or 0.7 percent, to 4935.92 as of the close at 1:35pm. Three stocks fell for every two that rose.

The total value of trade was NT$50.1 billion (US$1.46 billion), almost a quarter less than the three-month daily average.

Taiwan Semiconductor, the largest supplier of made-to-order chips for customers such as Intel Corp and Nvidia Corp, fell NT$1.5, or 2.8 percent, to NT$52.5.

United Microelectronics Corp (聯電), the next-largest rival of Taiwan Semiconductor, fell US$0.70, or 2.3 percent, to NT$30.3.

The following stocks rose or fell.

ProMos Technologies Inc (茂德), Taiwan's fourth- largest memory-chip maker, fell NT$1.2, or 6.4 percent, to NT$17.6 after it slashed its pretax profit forecast for this year 96 percent and reported a worse-than-expected loss for the second quarter after chip prices fell. The stock fell NT$1.2, or 6.4 percent, to NT$17.6. The venture between Mosel Vitelic Inc (茂矽) and Infineon Technologies AG of Germany cut its forecast to NT$195 million (US$6 million) from NT$5 billion four months ago, saying it expects sales to drop by slightly more than a quarter to NT$20.7 billion.

Mosel Vitelic Inc, Taiwan's No. 5 computer-memory-chip maker, fell NT$0.35 cents, or 3.5 percent, to NT$9.65 after the company tripled its pretax loss forecast, saying it expects a bigger-than-expected drop in chip demand. The company increased its loss forecast to NT$5.87 billion from NT$2.06 billion announced in April.