Rebound in DRAM spot prices helps makers of memory


Wed, May 15, 2002 - Page 18

The TAIEX rose, paced by Nanya Technology Corp (南亞科技) and other memory chipmakers, after the price of their main product rose for the first time in four weeks, driving their US peers higher.

Mediatek Inc (聯發科技), the most active stock by value, dropped after a report said the nation's No. 2 chip designer is prepared to cut its gross margin by four-fifths to fend off rivals.

The TAIEX rose for a fifth day in six, adding 13.26, or 0.2 percent, to 5,755.92. Trading was worth NT$62.8 billion, 45 percent less than the daily average in the past three months.

Within the index, more than two stocks fell for each that gained as a four-month water shortage continues to threaten to raise costs and curb production at electronics makers and other heavy water users.

"The gains in US stocks will help lift buying sentiment here, though fundamental worries such as the water shortage still exist," said Richard Huang, who oversees NT$2 billion at Shinkong Investment Trust Co (新光投信). "Valuations have come down, so from a mid-term to long-term perspective, it's a buying opportunity."

Nanya Technology climbed NT$1.3, or 4.5 percent, to NT$30.50 after the price of a standard 128-megabit memory chip rose 3.1 percent, according to DrameXchange, a market place for memory chips. Mediatek, whose shares rose 29 percent in the first quarter, fell NT$17, or 3 percent, to NT$547.

Macronix International Co (旺宏電子) rose NT$0.10, or 0.4 percent, to NT$25.6. The nation's third-largest chipmaker expects to return to profit this year after three quarters of losses as Japan's Nintendo Co, its biggest customer, orders more chips for video games.

Taiwan Semiconductor Manu-facturing Co (台積電), rose NT$2, or 2.4 percent, to NT$87. The world's largest maker of chips on a subcontracting basis, added the most to the TAIEX as it tracked gains in its US-traded shares.