Philips cuts stake in TSMC

Dutch electronics giant Royal Philips Electronics said Monday it had cut its stake in the world's biggest chip foundry, Taiwan Semiconductor Manufacturing (TSMC), as part of plans to divest its holding in the group, an AFP report said.

The AFP report said Philips reduced its stake to 12.8 % from 16.2 %, raising 1.3 billion euros ($1.71 billion), in line with its strategy to exit the semiconductor business.

Philips sold the bulk of its semiconductor business to a consortium of US investment funds last year and said it would focus on more stable areas such as lighting and medical equipment, the AFP report said.

Under the deal between the Dutch and Taiwanese companies, Philips is to sell a further stake in TSMC over the stock market for about $2.5 billion and will also make its shares available to TSMC for share buy-back schemes, the report further said.

Philips is also to abandon all positions on the board of TSMC and its representative in the management of the company had resigned last Friday, the report added.