(Yicai Global) Dec. 3 -- Shares of Taiwan Semiconductor Manufacturing, the world's largest maker of integrated circuits for other companies, gained after a report said the firm plans a preferential pricing policy for the first quarter of next year to entice new clients amid slowing orders.

The stock [TPE:2330] jumped 4.2 percent to close at TWD235 (USD7.64) today. The benchmark Taiwan Capitalization Weighted Stock Index gained 2.5 percent.

The pure-play chip foundry, based in the city of Xinzhu, will bring in special prices on original equipment manufacturing of eight-inch and 12-inch liquid crystal display panels, the Economic Daily News reported, adding that discounts will vary from client to client without revealing specific details.

Such a strategy is rare for Taiwan Semiconductor, which has enjoyed solid financial results for years. But revenue is expected to fall by about 15 percent in the first quarter of next year from a year earlier due to the usual off-season period and a downturn in smartphone sales. It aims to preempt that, limiting the impact of slack production capacity and a decline in quarterly results, according to industry analysts.

Regarding specific chip sizes, the company's output capacity for products using manufacturing process nodes of up to 12 nanometers remains full at present so the policy will cover displays using mature and special processes above 12nm.

Editor: William Clegg