TSMC plans to cut stake in Vanguard; remains biggest stakeholder

TAIPEI, April 11 Fri Apr 11, 2014 4:51am EDT

TAIPEI, April 11 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd, the world's No.1 contract chip maker, said on Friday its board has approved a plan to sell a 5 percent stake in Vanguard International Semiconductor Corp for T$3.5 billion ($1.17 billion).

The sale would reduce TSMC's stake in the smaller chip maker to 33.3 percent, according to a TSMC statement.

TSMC remains the biggest shareholder of Vanguard following the sale, the company said.

Shares of Vanguard ended Friday down 1.1 percent at T$44.8. TSMC is planning to sell the 5 percent stake at T$42.55. (Reporting by Faith Hung; Editing by Christopher Cushing)