TSMC Plans to Sell VIS Shares; Vanguard International Semiconductor Plummets to Limit Down

(CNA, Hsinchu, May 18, by reporter Chang Chien-chung) TSMC plans to sell no more than 152 million common shares of Vanguard International Semiconductor (VIS), approximately 8.1% of VIS's equity. TSMC emphasized this will not affect its strategic partnership with VIS, but the news still caused VIS's stock price to plummet to its limit down today.

TSMC stated that it currently holds a 27.1% stake in VIS. To focus its resources on core businesses, it plans to execute a block trade to sell about 8.1% of its VIS shares to a financial investment institution. After this sale, its holding in VIS will decrease to about 19%. TSMC has no plans for further sales of VIS shares in the foreseeable future.

TSMC stressed that the share sale plan does not affect its strategic partnership with VIS, which includes commissioning VIS for the production of silicon interposers and licensing Gallium Nitride (GaN) process technology to VIS.

Market insiders believe that TSMC's plan to divest shares could be detrimental to VIS's short-term valuation. Under selling pressure today, VIS's stock price plunged to its limit down, reaching NT$159, a decrease of NT$17.5. (Editor: Yang Kai-hsiang)