"We are working closely to devise a plan to facilitate an orderly disposal of Philips' shares" in Taiwan Semiconductor, JH Tzeng, spokesman for the company said by phone. "We do not rule out a buyback."

Gerard Kleisterlee, the Amsterdam-based company's chief executive, said Monday Philips wants to exit its shareholding in Taiwan Semiconductor because there's "no business relation" between the two companies. Philips said in August that it will lower its 16.2 percent holding in the Taiwanese company in a "responsible manner."

Philips' stake in Taiwan Semiconductor is valued at about NT$289 billion, based on Monday's closing share price of NT$69. The Taiwanese chipmaker had NT$228 billion in current assets at the end of September, including cash, marketable securities and accounts receivable, according to the company's third-quarter financial report.

Any share buyback would need to be approved by Taiwan Semiconductor's board, which includes one representative from Philips. Under Taiwan law, the company cannot buy shares directly from any member of its own board, Tzeng said.

He didn't provide a timeline for when a decision would be made, and said the company will not necessarily engage in a buyback of its own shares.

Taiwan Semiconductor shares declined 0.3 percent at the close of trade in Taipei, compared with a 0.1 percent increase in the benchmark TAIEX index.