Chipmakers TSMC, Via Technologies lead decliners

Stocks slumped, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after the government said it needed more information on the chipmaker's application to invest in China.

The TAIEX dropped 29.71, or 0.6 percent, to close at 4,669.70. More than two stocks fell for every one that rose. The total value of trade was NT$81.6 billion (US$2.35 billion).

TSMC fell NT$1, or 2 percent, to NT$49. The government has yet to receive a response from the chipmaker after it sent a letter seeking clarification on its chip-making factories and the source of its funds for the China investment.

United Microelectronics Corp (聯電) slumped NT$0.70, or 2.8 percent, to NT$24.40. Yesterday, Intel Corp chairman Andy Grove said there's little growth in chip industry sales and he doesn't know when that will change.

China Motor Co (中華汽車) rose NT$4, or 6.4 percent, to NT$67. UBS Warburg raised its 12-month price target for the vehicle maker by 21 percent to NT$74, citing the company's plan to launch its Lancer sedan passenger car in China in March.

"A fundamental change is taking place, with investors moving funds into more traditional stocks where supply is more stable, and out of electronics stocks where the industry is suffering from oversupply and tumbling prices," said Gilbert Hsieh, who manages NT$1.6 billion in stocks at Grand Cathay Securities Investment Trust Co (大華投信).

China Development Financial Holding Corp (中華開發金控) fell NT$0.10, or 0.8 percent, to NT$13. The Taipei District Court will reconsider whether to place the company's chairman, Liu Tai-ying (劉泰英), according to a report in the Liberty Times.

Cosmos Bank Taiwan (萬通銀行) fell NT$0.20, or 1.6 percent, to NT$12.70. The lender said it plans to sell NT$6.18 billion of bad loans to Lone Star Asia-Pacific Ltd and Taiwan Asset Management Co (台灣金聯) to lower its bad-loan ratio.

Taiwan Cement Corp (台泥) rose NT$0.10, or 0.9 percent, to NT$11. The company received government approval to invest $11.3 million in three plants in China.

Waterland Financial Holdings (國票金控) fell NT$0.15, or 2.3 percent, to NT$6.35 The holding company formed by the combination of International Bills Finance Corp (國際票券), Grand Orient Securities Corp (大東證券) and Concord Securities Corp (康和證券) dumped its NT$852.5 million profit forecast for a NT$2.97 billion loss as it writes off bad loans.

Via Technologies Inc (威盛科技) fell NT$1.70, or 4.1 percent, to NT$40.30.

The Taipei district prosecutor's office charged the company with patent violations of rival MediaTek Inc's (聯發科技) chip designs. Via said it will cooperate.