Taiwan stocks off, PC shares hit by weak server sales

* PC shares slip after worldwide server revenue falls in Q3

* LCD shares up on demand and consolidation hopes

* Taiwan Cement up after announcing acquisition (Updates index, adds details and quotes)

TAIPEI, Dec 1 - Taiwan stocks fell 0.18 percent on Tuesday, as gains in LCD panel makers such as AU Optronics were offset by losses in PC-related shares after a report that global revenue from server sales tumbled in the third quarter.

AU Optronics, the world's No. 3 LCD panel maker, was up 1.21 percent, beating the broader optoelectronics sub-index's 0.42 percent advance.

"LCD shares are always a forward looking indicator for consumer tech stocks," said John Chiu, vice-president at Fuh Hwa Securities.

"They're climbing now because lots of tech products have LCD displays, and demand is looking strong now."

Further boosting the sector was a local newspaper report saying there was market speculation that AU considers acquiring smaller rival Chunghwa Picture Tubes in an attempt to thwart Hon Hai's entry into the sector.

Chunghwa was up 0.47 percent, and was the morning's most active issue by volume.

The optoelectronics sub-index has risen also 90 percent so far this year, largely on the back of rising demand for TVs and laptop PCs from China and continued hopes that utilisation rates could remain high even in the traditionally quiet first quarter.

Leading losses were PC-related shares such as Quanta and Hon Hai, which fell after research firm Gartner said worldwide revenue from the high-end server business tumbled 15.5 percent in the third quarter.

Quanta slipped 0.46 percent while Hon Hai was down 0.74 percent, dragging the broader electronics sub-index down 0.22 percent.

HOT STOCKS

-- Taiwan Cement rose 2.53 percent after its Hong Kong-listed unit TCC International said it would buy the assets of Prosperity Minerals Holding Ltd, the buyer said late on Monday. ((Reporting by Taipei newsroom; +886 2 2508 0815)) (