Tue, Jul 27, 2004 - Page 11 News List

Index falls again as TSMC and AU Optronics decline

BLOOMBERG

Stocks dropped yesterday, pushing down the TAEIX for a third session.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電) fell after a Chinese-language newspaper said both face smaller chip orders from some of their biggest customers next month as demand declines.

"The growth outlook for the semiconductor industry is worrisome in the second half," said Yang Ya-hui (楊雅惠), a fund manager at PCA Securities Investment Trust Co (保誠投信).

"Demand for semiconductors wasn't as strong as investors would like," he said.

The TAEIX shed 42.14, or 0.8 percent, to 5,331.71, for a three-day, 1.4 percent drop. The TAEIX futures for delivery next month lost 0.2 percent to 5,275.

TSMC fell 3.7 percent to NT$41.20, while UMC dropped 2.3 percent to NT$21 on news that Nvidia Corp and STMicroelectronics NV are among about 10 customers that will start cutting orders with the Taiwanese chip suppliers in the current quarter.

AU Optronics Corp (友達光電) and Quanta Computer Inc (廣達電腦) also declined on concern demand in the US, the nation's second-largest export market, may slow.

AU Optronics, the country's largest maker of flat-panel displays used in computers and televisions, fell 1.2 percent to NT$39.90. Quanta Computer, the world's biggest notebook computer maker, fell 2.4 percent to NT$60.50.

"Economic indicators may show the US economy will slow in the coming months," said Mike Shiao (蕭光一), a fund manager at Invesco Taiwan Ltd (景順投信). "Investors are selling stocks."

This story has been viewed 2415 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top