Winbond and Taiwan Semiconductor lead gains on the TAIEX

Stocks gained, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after Citigroup Inc raised its 2004 growth forecast for the semiconductor industry to 20 percent from 14 percent.

"This year will end tomorrow and it's time to look ahead," said Edward Tseng, a fund manager at Ta Chong Investment Trust Corp (大眾投信). "The year 2004 will be a better year across the board."

The TAIEX added 61.86, or 1.1 percent, to close at 5866.75, boosting its gains for the year to 32 percent. Around two stocks rose for every one that fell. The Taiwan futures index gained 0.9 percent to 5890.

About 3.5 billion shares worth NT$78.6 billion (US$2.3 billion) changed hands, in line with the three-month daily average.

TSMC, the world's largest maker of computer chips on a subcontracting basis, rose NT$1, or 1.6 percent, to NT$63. United Microelectronics Corp (聯電), the world's No. 2, added NT$0.40, or 1.4 percent, to close at NT$29.20.

Semiconductor packaging and testing firms were the next best performers.

Advanced Semiconductor Engineering Inc (日月光) finished up 5.1 percent at NT$34.8 and Precision Industries Co (矽統) rose 3 percent to close at NT$34.3 after a Chinese-language newspaper reported that the two companies expect business to improve over the coming two quarters -- traditionally a slow season for chips.

Asustek Computer Inc (華碩電腦), Taiwan's largest maker of the boards that hold the chips that run computers, fell NT$1, or 1.3 percent, closing at NT$75.50 on concerns that the resignation of a director from its board could signal internal problems.