Philips remains largest shareholder Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) said Friday it sold 151.7 million American Depositary Shares (ADS) on behalf of shareholders, including Dutch electronics giant Koninklijke Philips Electronics NV.The share sale reduced Philips’ stake in TSMC to 16.6 percent from 18.7 percent previously, Philips said in a statement. Philips was one of the original investors in TSMC when it was just a start-up in the late 1980s.TSMC said it sold the tranche at an average US$8.60 per share, compared to its closing price of $8.65 Thursday on the New York Stock Exchange. The company also sold shares on behalf of a development fund run by the Taiwan government, as well as additional shareholders. The amount of TSMC stock in the U.S. rose to 17.3 percent of its total shares, from 14.2 percent previously, TSMC said. The company is listed in both Taiwan and the U.S. The TSMC offering was made up of existing Taiwan common shares that were converted into ADSs. No new shares were sold.Philips will receive €715 million (US$885 million) in gross proceeds from the transaction, which is scheduled to close Aug. 10, and book a non-taxable gain of €420 million in its earnings for the third quarter of 2005, the European company said.The company’s stake in TSMC could drop further in the near term. The underwriters of the share sale have an option to buy up to 22.7 million more ADSs within 30 days to cover over-allotments. If they purchase the full amount, Philips’ stake in TSMC would fall to 16.3 percent, Philips said. Both Philips and the Taiwan government’s development fund have both agreed not to sell any more TSMC shares at least until the end of 2006 in Taiwan or international markets, TSMC said.“Philips will therefore remain among the largest shareholders in TSMC for the foreseeable future,” Philips said. Technology Industry