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Cabinet and TSMC speak in support of Vanguard chairman

Local chipmaker Vanguard Inter-national Semiconductor Corp (世界先進) yesterday rejected speculation that the Cabinet -- one of its major shareholders -- would nominate a new candidate to replace chairman Lin Chuan (林全) after the Chinese Nationalist Party's (KMT) victory in the presidential election.

"The report about the personnel changes involving Vanguard chairman Lin Chuan is mere media speculation. It is groundless," Vanguard said in an e-mailed statement.

The company's remarks came after the Chinese-language newspaper Commercial Times reported yesterday that Lin could step down in response to the shuffle in the nation's political landscape.

JOINT DECISION

Two years ago, major shareholders the Democratic Progressive Party's Cabinet and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world's top contract chipmaker, jointly tapped Lin as Vanguard's new chairman, aiming to boost the corporate governance of the chipmaker.

The Cabinet owns a controlling 16 percent stake in Vanguard via a venture capital fund called the Development Fund.

The fund said it would offer its full support to Lin to retain his post of Vanguard's chairman as he has made great contributions to safeguarding shareholders' interests by pushing for better financial results, a statement released yesterday said.

SOLID SUPPORT

TSMC, which holds a 36 percent share of Vanguard, also sided with Lin.

"Dr (Chuan) Lin's performance over the past two years as Chairman of Vanguard International Semiconductor has been excellent and TSMC supports his continued service as chairman of Vanguard," TSMC chairman Morris Chang (張忠謀) said in a press release yesterday.

Vanguard's net income surged 43 percent last year to reach NT$4.32 billion (US$144 million) or NT$2.53 per share, compared with NT$3.02 billion, or NT$1.8 a share in 2006.

Shares of Vanguard rose 0.47 percent, or NT$0.1, to NT$21.6 yesterday on the GRETAI Securities Market, defying a 0.79-percent loss on the benchmark TAIEX index.
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