Taiwan Semiconductor Manufacturing or TSMC (TPE:2330) plans to sell up to 152 million shares, or about 8.1% of Vanguard International Semiconductor (TWO:5347), through a block trade to financial institutional investors, according to Friday Taiwan Exchange filing.
TSMC said the sale will not affect its strategic relationship with VIS, including the outsourcing of interposer production and licensing of GaN technology.
Vanguard International Semiconductor's shares have slumped about 10% in recent trade.
The company currently holds around 27.1% of Vanguard International Semiconductor on a fully diluted basis and expects its stake to fall to nearly 19% after the transaction.
The divestment is part of TSMC's strategy to focus resources on its core business activities, it said.