TSMC plans to sell 152 million shares in chipmaker Vanguard
TSMC announced plans to sell up to 152 million shares in Vanguard International Semiconductor (VIS) through a block trade, reducing its stake from 27.1% to 19% and raising around $850 million. The sale, valued at 26.8 billion Taiwan dollars, will not impact TSMC’s strategic partnership with VIS, including outsourcing interposer production and GaN technology licensing, though it exited VIS’s board in June 2024.
TSMC, the world’s largest contract chipmaker, announced on Friday it will sell up to 152 million shares in Vanguard International Semiconductor (VIS) via a block trade to institutional investors. The transaction aims to reduce TSMC’s ownership stake in VIS from approximately 27.1% to 19% on a fully diluted basis. At current market prices, the sale is estimated to generate around 26.8 billion Taiwan dollars (US$850 million). The move is part of TSMC’s strategy to focus on core business activities, though it assured the sale will not disrupt its existing relationship with VIS. This includes outsourcing interposer production and licensing gallium nitride (GaN) technology to the company. TSMC also confirmed it has no plans to sell additional VIS shares in the near future. In June 2024, TSMC ceased representation on VIS’s board of directors, marking a shift in its involvement. The company emphasized that the share sale aligns with its broader efforts to streamline operations while maintaining key partnerships in the semiconductor industry. The transaction reflects TSMC’s ongoing financial strategies amid a competitive global market, where chipmakers continue to optimize their portfolios. The sale does not signal a withdrawal from collaboration with VIS, as both entities remain engaged in critical technology exchanges.
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