Chipmakers TSMC, UMC lead tech gains on TAIEX

The TAIEX gained, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電), after Intel Corp, the world's biggest maker of computer chips, said revenue this quarter will rise.

BenQ Corp (明基電通), the country's biggest mobile-phone maker, climbed after its main customer, Motorola Inc, reported three straight quarters of profit, the first time in more than two years.

``Motorola and Intel's reports come as a surprise,'' said Mike Shiao (蕭光一), who manages the US$12 million Taiwan Select Growth Fund at Invesco Taiwan Ltd (蕭光一).

``Many people have already lowered their expectations on companies' earnings amid war in Iraq'' and SARS, he said.

The TAIEX gained 121.73, or 2.7 percent, to 4,609.32, its highest close since February 18. About nine stocks gained for every one that declined.

MSCI Taiwan futures for April delivery in Singapore added 3.1 percent to 198.20, while the Taiwan Futures Index gained 3.4 percent to 4,625.

TSMC, the world's largest maker of computer chips on a subcontracting basis, rose NT$2.20, or 4.9 percent, to NT$46.90. UMC, the second-largest, added NT$0.70 , or 3.5 percent, to NT$21.00.

Intel revenue this quarter will rise to US$6.4 billion to US$7 billion, from US$6.32 billion in the year-earlier period, on expectations that sales of personal-computer processors will continue to improve, chief financial officer Andy Bryant said on a conference call.

BenQ rose NT$1.4, or 3.6 percent, to NT$40.60. Motorola, the world's No. 2 mobile-telephone maker, had first-quarter net income of US$169 million.

China Airlines Co (華航) rose 35 cents, or 2.9 percent, to NT$12.65 after it said it won approval from Beijing to buy a quarter stake in a cargo unit of China Eastern Airlines Corp (東方航空), helping it gain a foothold in the China's freight business. China Airlines will complete the transaction by the end of June, said the company's public relations officer Joseph Wu (武志厚).