TSMC Divestment Has No Credit Profile Impact on Vanguard International Semiconductor, S&P Says
Vanguard International Semiconductor (TPE:5347) will not observe any credit profile impact even if Taiwan Semiconductor Manufacturing (TSMC) (TPE:5425) divests part of its shareholding in the company, S&P Global Ratings said in a recent release.TSMC looks to dispose of up to 152 million common shares in the specialty IC foundry service provider, or about 8.1% of the latter's fully diluted paid-in capital, S&P said.As a result, TSMC's Vanguard share will drop to about 19% from 27.1% currently.TSMC's technology support for Vanguard will not change despite the divestment, S&P said.The technical support covers intellectual properties and technologies for the company's starting operations at the new 12-inch IC foundry in Singapore, the licensing of specialist technology, or the outsourcing of interposer production, the rating agency said.S&P does not expect a shift in the business relationship between the two companies, including TSMC's lack of operational control over Vanguard.
