US economic news fuels exporters

Stocks gained yesterday, led by exporters such as Hon Hai Precision Industry Co (鴻海精密) and Media-Tek Inc (聯發科技), after US reports showed the world's largest economy will improve in the next three to six months.

"The US economy will remain the main driving force behind Taiwan's growth," said Fam Hsieh, a fund manager at Grand Cathay Securities Trust Co (大華投信).

"Taiwan's exporters will benefit from strong overseas demand," Hsieh said.

The TAIEX added 7.1, or 0.1 percent, to 5,757.91 on turnover of NT$112.05 billion (US$3.29 billion). For the week, the index gained 2 percent.

Seven stocks rose for every four that declined. The futures contract for September delivery fell 0.1 percent to 5,756.

Hon Hai Precision, the country's biggest electronics maker, added NT$3, or 2 percent, to NT$157. MediaTek, the world's largest supplier of semiconductors for DVD players, climbed NT$9, or 2.3 percent, to NT$394.

Delta Electronics Inc (台達電子), the world's biggest maker of computer power-supply systems, rose NT$1, or 2.2 percent, to NT$45.70.

Delta Electronics (Thailand) Pcl, a unit of Delta, may build a 4.8 billion baht (US$118 million) plant to boost production, an investment that may fetch tax breaks. The company wants to extend its tax-free status, which expires in 2005, for another eight years, executive director Anusorn Muttaraid said.

Evergreen Marine Corp (長榮海運), the world's second-largest maritime cargo shipping company, was unchanged at NT$24.90 after gaining as much as 3.6 percent.

Evergreen had its ``buy'' rating maintained by Deutsche Bank AG as stronger demand pushed freight rates higher.

ProMOS Technologies Inc (茂德科技), the nation's No. 2 memory-chip maker, rose NT$0.70, or 5 percent, to NT$14.70.

ProMOS is seeking two investors to fund 38 percent of a planned $2.5 billion memory-chip plant, the South China Morning Post reported.

Director Albert Lin (林育中) said ProMOS was in talks with potential investors without naming them, the newspaper reported. The potential investors aren't Taiwanese and a deal could be completed before the end of the year, Lin said.

ProMos hopes to start building the new plant, its second to make memory chips on 300-millimeter silicon wafers, in the first half of next year, the report said.

Taiwan Semiconductor Manu-facturing Co (台積電) closed down NT$1.50 at NT$69.

United Microelectronics Corp (聯電) fell NT$0.40, or 1.3 percent, to NT$29.50, despite news that Japan-based subsidiary UMC Japan has decided to invest US$45 million in Singapore unit UMCi.