Chipmakers lead TAIEX lower as Intel cuts forecasts

Shares ended sharply lower yesterday, led by chipmakers after US semiconductor giant Intel Corp cut its third-quarter sales forecast.

The TAIEX fell 91.71 points, or 1.6 percent, to 5,761.14 in trading valued at NT$111.16 billion (US$3.27 billion).

A total of 442 stocks finished the session lower, while 263 were up and 154 were unchanged.

"Technology companies all face the same problem over capacity and weak demand," said Fam Hsieh (謝良武), a fund manager at Grand Cathay Securities Trust Co (大華投信) in Taipei. "Intel's problem is a reflection of a common theme."

Taiwan Semiconductor Manufacturing Co (台積電), the world's No.1 made-to-order chip maker, fell 3.3 percent to NT$44.4, while rival United Microelectronics Corp (聯電) shed 4.4 percent to NT$21.6.

In a knee-jerk reaction, memory-chip stocks also fell. Powerchip Semiconductor Corp (力晶半導體), which trades on the over-the-counter market, fell 4 percent to NT$24.2, while its mainboard-listed peer Nanya Technology Corp (南亞科技) lost 5.3 percent to NT$25.1.

Panel makers ended lower, despite hopes that product prices would bottom out in October, due to expectations of weak revenue last month.

Prices of LCD monitors fell by as much as 19 percent last month from July, California-based Isuppli said in a press release.

AU Optronics Corp (友達光電), the industry's No.1 in Taiwan, fell 2.6 percent to NT$44.2, while Chi Mei Optoelectronics Corp (奇美電子) declined 0.7 percent to NT$45.