Credit Suisse First Boston raises weighting of Taiwan's semiconductor stocks
Taipei, Aug. 13, 2000 (CENS)--The Taipei branch of Credit Suisse First Boston recently raised the weighting for local stocks of wafer foundries and DRAM (dynamic random access memory) chipmakers.
The performance of dedicated and DRAM chips will serve as the leading indicator for the price movement of the local bourse for the rest of the year, the Swiss bank said in a recent report.
After setting record sales revenue in July, the production at Taiwan Semiconductor Manufacturing Co. is expected to expand continuously, at a rate of 8,000-10,000 per month until the end of the year, the report said.
Meanwhile, wafer production at United Microelectronics Corp. is likely to expand by 4,000-5,000 units per month in the third quarter of the year.
The bank also predicted TSMC's earnings per share (EPS) will top NT$5.46 in 2000 and another NT$8.45 next year, while UMC is likely to snap up an EPS NT$4.16 this year and NT$5.58 in 2001.
July sales for most of DRAM chipmakers also posted strong gains, due in part to improved product quality after the chipmakers moved their production by using more advanced 0.175- and 0.18 micron manufacturing processes.
Contract prices for DRAM chips are likely to hit as high as US$8 and US$8.25 per unit in the near term, as demand for personal computers is expected to reach its peak in the fourth quarter, pushing up demand for IC chips.
The bank also foresees a bright future for stocks of IC design and chipset makers, notably Via Technology and Realtek Semiconductor. It recommended strong buying of Realtek stocks, as the firm's EPS is likely to reach NT$7.40 this year and NT$9.30 in 2001. |
