Shipping delays affect TAIEX, chipmaker gains

Taiwan's stocks fell, paced by BenQ Corp (明基電通), after a Chinese-language newspaper reported the nation's largest mobile-phone maker may reroute US-bound shipments to avoid West Coast port closures.

``That may delay shipments and will increase costs,'' said Phil Chen, who manages NT$900 million ($25.7 million) in stocks at Grand Cathay Securities Investment Trust Co (大華投信).

``Personal computer and PC monitor makers, which ship most of their products by sea, will be most affected by the port closures.''

TAIEX shed 8.19, or 0.2 percent, to 4067.79. The index fell for a third week, sliding 3.4 percent as US West Coast port closures disrupted shipments and Advanced Micro Devices Inc said third-quarter sales missed its forecast.

BenQ, which also makes computer monitors and DVD players, fell 2.2 percent to NT$40. BenQ may send US-bound shipments to Vancouver, Mexico or the US East Coast to avoid the West Coast port shutdowns, the newspaper reported.

The nation's computer-monitor makers, which mostly ship products by sea, have one to two week's supply in the US, the paper said.

Winbond Electronics Corp (華邦電子), Taiwan's largest computer-memory-chip maker by market value, rose 2.5 percent to NT$14.55. Memory-chip distributors with about a week's stock of chips are replenishing supplies as computer demand in the US and Europe revives.

The price of a benchmark type of dynamic random access memory chip rose 1.9 percent yesterday, and 5 percent this week, according to DramExchange.com, a Taiwan-based clearing house.

More than three stocks fell for every two that rose.

The total value of trade was NT$44.63 billion, a quarter below the three-month average.

Compal Electronics Inc (仁寶電腦) fell NT$1.20, or 4 percent, to NT$29.

Taiwan's second-largest notebook-computer maker sold $300 million of bonds convertible into shares to overseas investors. Compal has said the proceeds will be used to purchase goods overseas.

Powerchip Semiconductor Corp (力晶半島體) rose a total of 60 cents (this amounts to 5 percent) to NT$12.60.

Powerchip Semiconductor is Taiwan's third-largest maker of computer-memory chips. The company will start supplying memory chips to Japan's Elpida Memory Inc and multipurpose semiconductors to Mitsubishi Electric Corp.

First Commercial Bank (第一銀行) rose 80 cents, or 4.4 percent, to NT$18.90.

Taiwan's largest publicly traded lender by assets said it plans to sell NT$30 billion of bonds that will mature in two to 10 years.