Chipmakers gain, lending the TAIEX a boost

Stocks rose, with the TAIEX closing at its highest in more than five months. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other chip-related stocks gained after a key semiconductor index jumped to a six-week high.

Shares also gained after a US Bancorp Piper Jaffray analyst raised revenue and earnings estimates for Applied Materials Inc, the biggest maker of equipment to build semiconductors.

In February, "factory utilization will start to rise at TSMC and United Microelectronics Corp (UMC, 聯電)," said Kevin Huang, who manages NT$600 million (US$17 million) of Taiwan equities at Reliance Securities Investment Trust Co (德信投信) "As orders start coming in, that should mean sales will trend upwards."

TAIEX rose 140.46, or 2.9 percent, to close at 4,991.26, its highest since July 30. Almost four stocks rose for every one that fell. The value of trade was NT$126.5 billion. TSMC rose NT$3.30, or 7 percent, to NT$50.50. UMC climbed NT$1, or 4.4 percent, to NT$23.80.

Huang is looking to buy shares of chip designers such as ALi Corp (揚智科技) and Sunplus Technology Co (凌揚科技).

ALi, the nation's second-largest designer of chips for DVD players, rose NT$2, or 4.6 percent, to NT$45.30. Sunplus Technology, the island's largest designer of chips used in toys and digital cameras, rose NT$2.50, or 4.1 percent.

Hon Hai Precision Industry Inc (鴻海精密) rose NT$3.50, or 2.8 percent, to NT$128.50. The country's largest maker of parts for personal computers reported December sales jumped 87 percent to NT$29 billion from a year earlier.