TSMC: Obtaining SMIC Shares Needs Taiwan Government Approval
TAIPEI -(Dow Jones)- Taiwan Semiconductor Manufacturing Co. (TSM) needs to get
approval from the Taiwan government to obtain shares in China's Semiconductor
Manufacturing International Corp. (SMI) because of restrictions on Taiwan
companies owning stakes in mainland China companies, TSMC spokesman J.H. Tzeng
said Tuesday.
The comment comes after SMIC said Tuesday it had agreed to pay TSMC US$200
million in cash, and issue it with new shares and a warrant to settle a long-
running legal dispute. TSMC's stake in SMIC would be about 10% if it exercises
the warrant.
Tzeng declined to elaborate on the size of the potential stake in SMIC because
of the need for government approval and because "we may not execute the warrants
immediately."
"If we get the Taiwan government's approval, we will be a solely passive
investor (in SMIC)," Tzeng said.
-By Alex Pevzner, Dow Jones Newswires; 8862-2502-2557; alex.pevzner@
dowjones.com
(END) Dow Jones Newswires
11-10-090530ET
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