Warren Buffett takes $4.1 billion stake in TSMC, sends TSMC shares upwards

Berkshire Hathaway has purchased a chunky $4.1 billion worth of stock in Taiwan Semiconductor Manufacturing Company (TSMC), sending TSMC shares upwards.

Warren Buffett takes $4.1 billion stake in TSMC, sends TSMC shares upwards
Published Nov 15, 2022 7:30 PM CST
1 minute & 1 second read time

Warren Buffett's Berkshire Hathaway has purchased a $4.1 billion stake in TSMC (Taiwan Semiconductor Manufacturing Company), wherein a filing with the United States Securities and Exchange Commission (SEC) on Monday, Berkshire Hathaway acquired around 60 million American depository shares of TSMC.

The news saw TSMC shares rise over 8% in Taiwan on Tuesday, with a TSMC spokesperson explaining: "TSMC welcomes all investors with the propensity to buy and hold TSMC's stock". TSMC has been the star of the world without many people knowing their electronic devices are powered by chips made by the Taiwan-based company (which is also making fabrication plants in the US).

Warren Buffett takes $4.1 billion stake in TSMC, sends TSMC shares upwards 01

TSMC CFO Wendell Huang explained on a conference call: "Moving into the fourth quarter 2022, we expect our business to be flattish as the end market demand weakens, and customers' ongoing inventory adjustment is balanced by continued ramp-up for our industry-leading 5nm technologies".

Taiwan Semiconductor Manufacturing Company (TSMC) also reduced its capital expenditure by 10% where it previously had planned to spend $40 billion this year, but after spending $25 billion so far, it will spend around $36 billion in the end... shaving off $4 billion from its capital expenditure. Not a big drop, but almost what Berkshire Hathaway just invested into TSMC, well, virtually the same down to the dollar.

As for Warren Buffett, the man has a net worth of around $103 billion... and has invested in many companies, but with TSMC making chips for CPUs, GPUs, electric vehicles and self-driving cars, AI, the cloud, IoT, consoles, and so much more... the huge investment makes sense.

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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