Asian tech shares rise; Intel boosts recovery hopes

By Rhee So-eui and Kelvin Soh

SEOUL/TAIPEI (Reuters) - Asian technology shares from South Korean chip firms to Taiwanese PC makers jumped on expectations the worst was over for the battered technology sector following Intel's robust outlook and results.

The strong earnings at Intel, the world's biggest maker of semiconductors, confirmed electronics demand was holding up in Asia and added to growing confidence the chip sector was turning around after a steep and lengthy slump.

"The Intel news is greeted most by chip makers as strong PC processor sales mean more revenue for chips. It is also a sentiment-booster for the overall electronics sector," said Park Young-joo, an analyst at Woori Investment & Securities in Seoul.

The market for dynamic random access memory (DRAM) chips, used mainly to power PCs, has stabilized after being ravaged by weak demand and plummeting prices for two-and-a half years.

There are signs of a rebound.

Last week, Samsung Electronics, the world's top maker of memory chips and flat screen TVs, forecast second-quarter earnings well above market estimates, and analysts expect Samsung's semiconductor unit to swing to profit in the last quarter.

By 0350 GMT, shares in Samsung Electronics rose 5.0 percent, hitting their highest level in more than a year, and second-ranked Hynix Semiconductor gained 3 percent.

In Taiwan, the world's No. 3 PC brand Acer and the top contract chip maker TSMC both advanced more than 3 percent after Intel said revenue from the low-cost, low-power Atom processor soared 65 percent from the first quarter.