Earnings fears hit TAIEX
The bourse extended its losses yesterday amid lingering concern over corporate earnings after US chipmaker Advanced Micro Devices Inc (AMD) reported an unexpected sales decline in the second quarter, dealers said.
The weighted index closed down 0.8 percent at 7,251.35, on turnover of NT$74.14 billion (US$2.48 billion).
AMD reported overnight that second-quarter sales fell 11 percent from the first quarter because of weakness in China and Europe. It had estimated an increase of 3 percent.
AUO, HannStar sales rise
AU Optronics Corp (AUO, 友達光電), the nation’s No. 2 LCD panel maker, yesterday said revenue grew 6.4 percent to NT$33.4 billion last month from May’s NT$31.4 billion, according to a company statement.
That brought the company’s second-quarter revenue up 17.4 percent sequentially to NT$95.19 billion.
Shipments of PC and TV panels increased 16.5 percent to 31.75 million units last quarter from the first quarter, while shipments of panels for mobile devices rose 3.6 percent during the same period to 38 million units.
Smaller rival HannStar Display Corp (瀚宇彩晶) also posted a higher revenue last month, up 4.7 percent month-on-month to NT$2.83 billion.
However, Chunghwa Picture Tubes Ltd (中華映管), another panel maker, said revenue slipped 1.6 percent to NT$3.6 billion last month, compared with NT$3.65 billion in May.
Panel shipment forecast cut
Flat screen researcher WitsView on Monday cut its forecast for second-quarter global panel shipments by 3 percent.
WitsView, a research arm of Taiwan-based market information advisory firm TrendForce, revised its second-quarter forecast for panel shipment demand at the terminal consumer market from 163.5 million to 158.6 million units, representing a decline of 4.8 percent from the same period last year.
Shipments by the world’s top 10 LCD monitor brands in May reached 10.67 million units, up 4.9 percent from April. but down 0.4 percent from May last year, according to WitsView’s Worldwide LCD Monitor Shipments Report.
Second China bank upgrades
China’s Bank of Communications Co (交通銀行) plans to formally upgrade its representative office in Taipei into a branch on Monday next week, the lender’s local public relations firm said yesterday.
Bank of Communications is one of the top five commercial lenders in China, with more than 2,800 branches covering more than 80 major Chinese cities. It is the second Chinese bank to open a branch in Taiwan after Bank of China (中國銀行) last month.
UMC, Lattice form partnership
United Microelectronics Corp. (UMC, 聯電), the nation’s No. 2 contract chipmaker, yesterday said it had formed a partnership agreement with Lattice Semiconductor Corp and would begin mass producing the US firm’s 40 nanometer (nm) non-volatile products by the end of this year.
UMC will also work with Lattice on its 28nm product line, as 28nm HLP (high-performance, low power) process technology will give Lattice an edge in developing the field programmable gate array, or FPGA, market, UMC said.
NT dollar edges lower
The New Taiwan dollar yesterday retreated against the US dollar, dropping NT$0.01 to close at NT$29.985, as a weakening euro prompted traders in Asia to cut their regional currency holdings, dealers said. Turnover totaled US$730 million.