Time to buy Taiwan chipmaker stocks? Some investors are saying yes after semiconductors returned to the spotlight when Salomon Smith Barney Inc last week recommended investors buy chip stocks. Analysts expect semiconductor orders to pick up on signs the supply of new chips is low as computer sales have increased.
"We've been increasing our weighting in chip stocks in the last month-and-a-half," said Emil Wolter, who helps manage US$3 billion in global emerging markets at Pictet Asset Management in London. "Investors on a 12- to 18-month basis are going to be rewarded."
Analysts say the traditional high season of demand for electronics in the second half of the year may spur semiconductor purchases.
Intel Corp, the biggest computer-chip maker, said yesterday it expects sales of between US$6.2 billion and US$6.8 billion in the second quarter, more than some analysts estimate.
To be sure, Taiwan Semiconductor Manufacturing Co (TSMC,
United Microelectronics Corp (UMC,
"It's definitely too early to be building positions" in semiconductor stocks, said Dan Heyler, an analyst at Merrill Lynch & Co in Hong Kong.
Some see signs of demand for semiconductors in a pickup in sales for computers and chip designers. Quanta Computer Inc (廣達電腦), a notebook computer maker, said first-quarter sales rose 42 percent to US$805 million, a record from the year-ago period, as customers such as Dell Computer Corp and Apple Computer Inc ordered more notebook computers.
Via Technologies Inc (
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
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