Profits are disappearing almost overnight. No wonder international investors have turned cold on Asian companies once considered some of the hottest stocks on the planet.
Some analysts now believe a recovery is imminent, at least for Taiwan stocks.
The island makes not only some of the world's finest integrated circuits, but also precision parts needed for computers, telecommunications equipment and consumer electronics. Andrew Lu of CS First Boston says Taiwan's semiconductor companies are now scraping the bottom. And they have been bearish in recent months. But as they see the cycle turning, they will jump in toward the end of the year, especially as they see foreign investors start to pick up bargains. ASE subsidiary ASE Test Inc. is also among the world's largest companies specializing in testing services for integrated circuits.