TAIEX rises on hopes chip prices will gain

Taiwan stocks rose for a second day, led by Winbond Electronics Corp (華邦電), on optimism memory chip prices for will gain if Hynix Semiconductor Inc and Micron Technology Inc merge, reducing an oversupply.

The TAIEX Index rose 119.82, or 2.6 percent, to 4,766.43, after gaining 4.6 percent Monday. Within the index, 333 stocks rose and 147 fell. The total value of trade was NT$119.9 billion (US$3.5 billion), more than double the six-month daily average of NT$53.2 billion.

Hynix and US-based Micron Technology, which make up two of the top three chip producers, Monday said they began merger talks to form the biggest computer-memory-chip maker.

"With the cooperation between Hynix and Micron, we think prices will stabilize because they'll reach an agreement on reducing supply," said Ken Chang, a semiconductors analyst at KGI Securities Co (中信證券).

Computer-memory-chip makers rose on optimism a possible merger between Micron Technology and Hynix will alleviate a glut in memory chips.

Winbond Electronics Corp, Taiwan's biggest computer-memory-chip maker by market value, rose NT$0.95, or the maximum-permitted 6.8 percent, to NT$14.90. Nanya Technology Corp (南亞科技), the second biggest, rose NT$1.20, or 6.5 percent, to NT$19.70. Mosel Vitelic Inc (茂矽), the third biggest, rose NT$0.60, or 7 percent, to NT$9.20.

Made-to-order chipmakers rose on optimism semiconductor demand is starting to revive after the Semiconductor Industry Association said October chip sales rose from September, the first monthly rise since November last year.

Taiwan Semiconductor Manu-facturing Co (台基電) rose NT$1, or 1.3 percent, to NT$78.50. The biggest made-to-order chipmaker raised its profit forecast for the full year by a fifth to NT$13.2 billion. United Microelectronics Corp (聯電), TSMC's biggest rival, rose NT$2.40, or 5.8 percent, to NT$43.50.

Cathay Life Insurance Co (國泰人壽) rose NT$3.10, or 6.9 percent, to NT$48 after the Economic Daily News reported the net worth of Taiwan's biggest insurer and the value of its new insurance policies was as high as NT$295 billion, or NT$55.10 a share. The company will use the value to calculate a share-swap ratio in its acquisition of Capital Securities Corp, the paper said, citing spokesman Huang Tiao-kuei.

Hon Hai Precision Industry Co (鴻海) rose NT$4, or 2.6 percent, to NT$159. Taiwan's largest maker of personal computer connectors and cases said it booked a NT$100.9 million profit from the sale of part of its stake in MediaTek Inc, whose shares have more than doubled since they listed on the Taiwan stock market in July. Hon Hai still holds a 1.1 percent stake in Taiwan's second-largest chip designer, it said in a statement.

Silicon Integrated Systems Corp (矽統) fell NT$0.10, or 0.2 percent, to NT$43.50. Taiwan's second-largest chipset maker said sales in November fell 14 percent from October to NT$862 million.

VIA Technologies Inc (威盛) fell NT$1.50, or 1.2 percent, to NT$122. The second-largest designer of personal computer chipsets said sales last month were NT$2.7 billion, almost unchanged from a year ago.