Thursday, January 08, 2009

Chips Down

Contract Chip manufactures are seeing a dramatic drop in orders. This Reuter's Story tells the details.

December sales at Taiwan's UMC, the world's No.2 contract chip maker, fell 45.5 percent, its biggest drop in near seven years due to weaker tech demand, and the pain could continue into early 2009.

I took advantage of the drop to buy some TSM stock. If the drop of over 40% in orders is a long term trend then this is probably a bad move. On the other hand, if the economy stabilizes in 2009 then I think these stocks are a good buy.
Added Feb. 13 09: TSM purchased at $7.55 second week of January.
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