Royal Philips Electronics has agreed to sell 16.2% position in Taiwan Semiconductor Manufacturing, according to a joint statement from the two companies. The position is valued at approximately $8.5 billion. Under terms of the agreement, Philips this year will sell $1.75 billion in shares on the Taiwan Stock Exchange, and another $2.5 billion on the NYSE. TSMC also will buy back another $1.5 billion of shares. As for the remaining shares, TSMC will either buy them back by 2010, or Philips would consider selling them to institutional investors.