Fujitsu gains 16 pct on strong f'cast, chip moves

* Shares hit highest in more than six months

* Profit supported by shrinking chip loss, solid services ops

* Analysts see asset write-off, TSMC deal positively

TOKYO, May 1 (Reuters) - Shares in Japan's Fujitsu Ltd (6702.T) jumped 16 percent on Friday after the electronics maker issued profit forecasts well above market expectations and its deal with Taiwan's TSMC (2330.TW) helped brighten the outlook for its struggling chip operations.

Its stock rose to 487 yen by midday, after earlier increasing by its daily limit to 500 yen, its highest in more than six months. Fujitsu, Japan's biggest computer server vendor and No.2 PC maker, on Thursday said it expected a 16 percent rise in operating profit for the year that began last month, supported by relatively solid earnings in its core services operations and smaller losses in its chip business.

Its forecast for an 80 billion yen operating profit was above a consensus estimate by 14 analysts for a 23.8 billion yen profit. [nT294838]

Fujitsu also agreed with TSMC, or Taiwan Semiconductor Manufacturing Co, to outsource system chip production and consider collaborating on the development of next-generation chips to reduce hefty investment costs needed to keep up with the latest technology. "We take a strongly positive view of the speed and specifics of the company's asset impairment decisions and its move to work with TSMC," Credit Suisse analyst Hideyuki Maekawa wrote in a note to clients.

Fujitsu, which offers system chips used in products ranging from digital cameras and flat TVs to supercomputers, booked a 49.9 billion yen asset impairment loss on one of its chip plants last financial year to lessen depreciation costs in the future.