TSMC says fundamentals sound despite Intel chill
TAIPEI, Sept 23 (Reuters) - Morris Chang, chairman of Taiwan Semiconductor Manufacturing Co (TSMC) , cited sound fundamentals on Saturday and called for confidence in its shares which have been dragged down by Intel's revenue warning.
``Our fundamentals are better than before. Demand far exceeding supply is more serious than in the past,'' Chang told reporters. His comments were broadcast on cable network TVBS.
World number one chipmaker Intel's (NasdaqNM:INTC - news) first sales warning in two years sent Taiwan's electronics shares tumbling on Friday with world foundry leader TSMC falling its daily seven percent limit to T$106.5.
Intel said on Thursday its third-quarter revenues would be below forecast, and now sees only a three to five percent rise from second quarter sales.
Slower sales of the U.S. chip firm's market-dominating microprocessor also imply fewer personal computer shipments, as well as peripherals and memory chips that go into PCs.
Chang played down worries linked to the Intel warning, saying TSMC's production related to PCs were less than 40 percent and urged investors to focus on long-term investments.
The Intel news sent Taiwan's benchmark TAIEX (^TWII - news) tumbling 4.46 percent to end at a fresh 18-month low on Friday with many stocks dropping the seven percent daily trading limit.
The Taiwan main stock index has fallen 21.7 percent so far this year and was down 35 percent from a year high of 10,202.20 points marked on February 17.
On Friday, Finance Minister Shea Jia-dong said there was no need for Taiwan investors to ``dance to the tune of foreign funds''.
``The sharp fall in the stock market is just a short-term phenomenon. Investors can start thinking about whether it's time to pick up cheap stocks,'' the Commercial Times quoted Shea as saying in parliament.
Shea said the TAIEX would not tumble to 3,000-4,000 points when asked by an opposition lawmaker whether the index would fall to that level.
Foreign investors sold a net T$5.288 billion in local shares on Friday, taking their total net selling over the last six sessions to T$14.422 billion.
(US$1 equals T$31) |
