Taiwan parts makers scale back

Taiwan computer component maker Hon Hai Precision Industries scrapped on Friday a plan to raise $460 million overseas, becoming the latest tech company to tread more warily following attacks on the United States. Hon Hai said in a statement to the Taiwan Stock Exchange that the withdrawal of a planned issue of global depositary receipts (GDRs) was due to capital market conditions and because the fund-raising was not necessary at the current time. Taiwan Semiconductor Manufacturing, the world's largest contract chipmaker, said last week it would not use all its $2.2 billion capital expenditure budgeted for this year and said spending next year would be less than 2001 as market conditions were sluggish. Analysts said limited visibility in the struggling electronics industry after the deadly attacks on New York and Washington, D.C., made tech companies rethink strategies and move conservatively. Given such a bleak scenario, analysts said other electronics companies could find it tough to raise funds overseas as uncertainty hangs over global equity markets.