TSMC plans major share sale in Vanguard Semiconductor

10:15

Taiwanese semiconductor giant Taiwan Semiconductor Manufacturing Company announced plans to sell up to 152 million shares in Vanguard International Semiconductor through a block trade aimed at financial institutional investors.

The operation is expected to reduce TSMC’s ownership stake in Vanguard International Semiconductor (VIS) from approximately 27.1% to around 19% on a fully diluted basis. Despite the reduction, TSMC clarified that it does not intend to sell additional VIS shares in the near future.

Based on current market prices, the transaction is estimated to be worth nearly 26.8 billion Taiwan dollars, or around 850 million U.S. dollars. The announcement reflects the company’s strategy to focus more closely on its core semiconductor manufacturing activities.

TSMC emphasized that the share sale will not affect its strategic cooperation with VIS. The two companies are expected to continue collaborating in areas such as interposer production outsourcing and gallium nitride (GaN) technology licensing.

Industry analysts believe the move demonstrates TSMC’s intention to streamline investments while maintaining important industrial partnerships within Taiwan’s semiconductor ecosystem.

The company also recalled that it stopped having representation on VIS’s board of directors in June 2024, a decision that already signaled a gradual reduction in its direct involvement in the company’s management.

As the world’s leading contract chipmaker, TSMC remains a key player in the global technology supply chain, supplying advanced semiconductors for major electronics and artificial intelligence companies worldwide.