Taiwan chip desiger Mediatek cuts Q4 sales forecast

TAIPEI, Dec 26 (Reuters) - Taiwan's top chip designer Mediatek Inc (2454.TW) has cut its fourth-quarter sales forecast, saying sales would fall about 25 percent from the third quarter, sharper than a previous forecast of a 10 to 12 percent drop. The company gave the latest forecast late on Tuesday in a statement to the Taiwan Stock Exchange. No explanation was given and company officials were not immediately available for comment.

Citing a shortage of key components, Mediatek, which designs and supplies microchips for mobile phones, DVD players and digital TVs, said in November that it expected fourth-quarter sales to fall 10 to 12 percent from the third quarter.

Mediatek shares slumped 7 percent, their daily limit, to T$393.50 in early trade on Wednesday. Taiwan's main TAIEX share index dropped 1 percent. (US$1=T$32.5) (Reporting by Baker Li; Editing by Edmund Klamann)