Philips selling TSMC holdings

Author: Brett Thomas
Published: 10th May 2007

Shakeups in Taiwan -- Philips is selling its shares in TSMC.

In so many ways, it seems that Taiwan Semiconductor Manufacturing Corporation is having a great year. The latest ATI die shrink for Xbox 360's Xenos chip is expected to produce some record returns for the company, which is one of the largest fab companies in the industry. So why is Philips selling its stake?

Philips Electronics, a Dutch company, currently holds almost 13 percent of the chip maker. However, recent reports filed with the US Securities and Exchange Commission explain that Philips is looking for a "graceful exit" out of its ownership. Though Philips is not a US company, it needs to file the reports since it trades shares on American exchanges.

It's rumoured that the shares in TSMC could amount to a whopping $2.5 billion USD, which could explain why Philips is looking to unload the company. And the recent good news of increased business due to die shrinks means that it may be at a high-note.

But is this as high as it will get? Is Philips unloading it because it needs the money, because TSMC is riding high? Or could it be because Philips knows something about expected productions that we don't?

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