Taiwan's TSMC approves share buyback of up to $1 bln

TAIPEI, May 13 (Reuters) - Taiwan's TSMC (2330.TW: Quote, Profile, Research, Stock Buzz) (TSM.N: Quote, Profile, Research, Stock Buzz), the world's largest contract chip maker, said on Tuesday its board had approved a plan to repurchase stock worth up to $1 billion, or no more than 500 million of its common shares.

TSMC and Philips Electronics NV (PHG.AS: Quote, Profile, Research, Stock Buzz) said last year that Philips, which held a stake in TSMC, intended to sell down its holding in several phases.

"This buyback program by TSMC is part of the fourth phase of the multi-phase plan and Philips' intention not to sell TSMC shares other than during the period of a TSMC buyback program," TSMC spokeswoman and Chief Financial Officer Lora Ho said in the statement.

Taiwan Semiconductor Manufacturing Co (TSMC) said in a statement it plans to buy back shares at a price in a range of T$48.25 to T$100.50 per share from May 14 to July 13 this year and cancel the repurchased shares.

Philips holds around 5 percent of TSMC's common shares with a market value of about $2.8 billion, TSMC said.

TSMC's board also approved spending of $995 million to expand one of its two 12-inch fabs and increase its advanced process capacity, the firm said.

Shares of TSMC ended 1.9 percent higher, compared with a 1.8 percent gain in the benchmark TAIEX index. (Reporting by Sheena Lee; Editing by David Holmes)