Taiwan's stocks dropped, paced by Hon Hai Precision Industry Co (鴻海精密), after a Chinese-language newspaper reported Intel Corp delayed placing orders for computer circuit boards until the fourth quarter.
``Companies such as Intel can't see a clear revival in computer demand,'' said Karen Lin, who helps manage NT$3 billion (US$87 million) of stocks at Truswell Securities Investment Trust (富鼎投信).
``The fourth quarter should improve from the third quarter, but the rate of growth will be smaller than previous years.''
The TAIEX shed 7.48, or 0.2 percent, to 4660.53. Almost the same number of stocks fell as rose within the index. The total value of trade was NT$59.17 billion (US$1.72 billion).
Hon Hai, which makes circuit boards for Intel, lost NT$1.50, or 1.2 percent, to NT$123.50.
Asustek Computer Inc (華碩電腦) rose NT$1.50, or 2 percent, to NT$77.50. Computer-motherboard makers expect sales in September to rise from the previous month, the newspaper reported.
BenQ Corp (明基電通) lost NT$1.50, or 2.7 percent, to NT$55 on news that makers of computer monitors may lower prices as demand slows and after Samsung Electronics Co dropped the price of its monitors.
Sunplus Technology Co (凌陽科技) rose NT$4, or 6.9 percent, to NT$62. The company expects sales in September to stay at the same level as in August, when monthly revenue posted a record.
Microtest Corp (益和) fell NT$0.10, or 1.2 percent, to NT$8.30. The maker of electronic-testing equipment for semiconductor and computer companies slashed its profit forecast almost four-fifths to NT$11.5 million.
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