Warren Buffett’s Berkshire Hathaway Sells Entire Stake in TSMC
Warren Buffett’s conglomerate, Berkshire Hathaway, has sold its remaining shares in Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker.
The announcement was made in a filing indicating that Berkshire Hathaway no longer holds a stake in TSMC as of the end of Q1.
In recent weeks, Buffett had expressed concerns about the future of Taiwan, where TSMC is based, due to China’s claim over the self-governed democratic island.
This move completes an exit from TSMC by one of the world’s most watched investors, which had already been winding down its stake in recent months.
In February, Berkshire Hathaway revealed that it had sold 86% of its shares in TSMC, which were purchased for $4.1 billion just months before.
The quick sale was considered unusual as Buffett is known for making longer-term bets. During an analyst call earlier this month, Buffett explained his decision, saying, “I don’t like its location, and I’ve reevaluated that.”
Despite the share sale, Buffett lauded TSMC as “one of the best-managed companies and [most] important companies in the world.”
TSMC is a national treasure in Taiwan, supplying semiconductors to global tech giants, including Apple and Qualcomm.
It’s the world’s largest chip manufacturer, and its components are vital to the smooth running of everything from smartphones to washing machines.
The company is perceived as being so valuable to the global economy, as well as to China, that it is sometimes even referred to as forming part of a “silicon shield” against a potential military invasion by Beijing.
While TSMC is expanding overseas in countries including the United States, it’s also growing its footprint back home in Taiwan, where it plans to add more than 6,000 jobs this year.
As Berkshire Hathaway revealed its withdrawal Monday, other prominent investors made bets on the stock.
According to a regulatory filing, Macquarie has increased its stake in TSMC, while Tiger Global has also bought in.
