Taiwan's TSMC posts biggest profit in 1 year

TAIPEI, Oct 29 - Taiwan's TSMC <2330.TW>, the world's top contract chip maker, posted its biggest quarterly net profit in a year on Thursday after making more advanced chips for new computers and other high-tech gadgets. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) earned a net profit of T$30.55 billion ($904 million) in July-September, higher than the second quarter's T$24.4 billion but slightly lower than T$30.57 billion a year ago, the company said in a statement.

Analysts had expected TSMC to earn T$31.2 billion in the third quarter, according to a consensus forecast by Thomson Reuters I/B/E/S.

TSMC also said it raised its 2009 capex budget to $2.7 billion from the $2.3 billion previously forecast.

Analysts are anticipating TSMC's sales to be flat or weaken in the fourth quarter as tech demand typically slows from a peak in October into the first quarter.

A day earlier, cross-town rival and the world's second-largest contract chipmaker UMC <2303.TW> forecast its wafer shipments would fall slightly in the fourth quarter. [ID:nTP112950]

TSMC's shares gained 19 percent in the third quarter, similar to the rise in Taiwan's main TAIEX <.TWII>. UMC shares rose 43 percent in the same period. (US$1=T$32.6)