Chip market gets a boost

TSMC, the world's largest producer of semiconductors, has emerged out of its most difficult period ever to proclaim an upturn in its business may signal a broad chips industry recovery.

Hu Genda, VP marketing for the Taiwanese giant, told the FT that the recent terrorist attacks "put some clouds ahead of us... but we remain very optimistic".

However, at the same time the value of Philadelphia-based SOXX index of semiconductor-related stocks fell yesterday to close to a three-year low. It fell to 362 points, down from a 52-week high of 948.

This low coincided with a research note from Goldman Sachs Thursday morning downgrading chipmakers, who themselves have said the terrorist attacks this month will adversely affect any recovery.