United Microelectronics (UMC) - Get United Microelectronics Corp. Sponsored ADR Report of Taiwan was down 6.5% in early trading after Merrill Lynch said it expected the chipmaker to post a loss of T$0.10 per share in the second quarter. Analysts were expecting break-even results, according to Thomson Financial/First Call.
Merrill also said it expected UMC rival
Taiwan Semiconductor Manufacturing
, the world's largest contract chipmaker, to earn 2 cents a share, vs. the consensus forecast of break-even. Merrill said it expected TSMC to post an operating loss, offset by T$800 million to T$1 billion in tax credits and T$2 billion in foreign exchange gains from Taiwanese dollar devaluation.
TSMC was down 1.6%.