Investors hope for a rebound in chipmaker shares

The TAIEX rose yesterday, led by Taiwan Semiconductor Manufac-turing Co (台積電), as investors snapped up the chipmaker in the belief its shares are cheap and semiconductor demand may pick up later this year.

Some traders said government funds bought shares to shore up domestic investor confidence. The Taiwanese government manages a NT$500 billion stock market stabilization fund.

Leaving the broad market mixed was VIA Technologies Inc (威盛), after the chip designer said its June sales fell to their lowest level in 16 months as computer demand slumped.

The TAIEX rose 3.43, or 0.1 percent, to 4,886.86. The index climbed 78.90 points in the last hour and a half of trading.

Three stocks fell for every one that rose. The total value of trade was NT$32 billion (US$987 million), compared to the average daily trade of NT$81.7 billion this year.

Chipmakers who produce semiconductors on a made-to-order basis rose on expectations their sales this quarter will be better than the second quarter. On Friday, the Philadelphia Semiconductor Index, a price-weighted index of 16 companies involved in the design, distribution and manufacturing of semiconductors, rose 1 percent.

TSMC, the biggest made-to-order chipmaker, advanced NT$3, or 4.7 percent, to NT$67. United Microelectronics Corp (聯電), TSMC's biggest rival, rose NT$0.80, or 1.8 percent, to NT$46.50.

VIA Technologies Inc fell NT$8, or 3.4 percent, to NT$230. Taiwan's biggest chip designer said June sales fell 25 percent to NT$2 billion from May. The June sales figure was the lowest monthly sales figure since February 2000.

Lite-On (建興) fell NT$0.40, or 2.3 percent, to NT$16.70. The company, which makes chips that help process images in scanners and video intercoms, said Friday it will fire 150 employees, or 7 percent of its workforce to cut costs.

Mitac International Corp (神達) fell NT$0.79, or 4.4 percent, to NT$17.30. The company, which makes computers for Compaq Computer Corp and Hewlett-Packard Co, said Friday it will fire a tenth of its staff, or 150 workers, to cut costs, and will report first-half profit fell by more than a third as it slashed prices to boost sales.

Twinhead International Corp (倫飛) fell NT$0.40, or 6.8 percent, to NT$5.50. The notebook computer maker lowered its 2001 sales forecast 67 percent to NT$6 billion and expects a pretax NT$685 million loss this year.