A $4.1 billion investment in Taiwan Semiconductor Manufacturing Company, one of the biggest chipmakers in the world, has been acquired by Warren Buffett’s Berkshire Hathaway (TSMC).
In the three months that ended in September, Berkshire Hathaway purchased nearly 60 million American depository shares of TSMC, according to the company’s regulatory filing with the US Securities and Exchange Commission on Monday.
The news of Buffet’s foray into the tech sector sent the shares of TSMC soaring
The news of Buffet’s foray into the tech sector sent the shares of TSMC soaring by 8 percent on Tuesday. “TSMC welcomes all investors with the propensity to buy and hold TSMC’s stock,” a spokesperson for the chipmaker said.
TSMC produces processors for Apple Inc., Qualcomm, and Nvidia Corp., and is estimated to produce 90% of the most sophisticated computer circuits available.
Many people are puzzled by the transaction because Berkshire has had little luck investing in tech firms. However, TSMC was the top choice because of its desire for investing in businesses that have a competitive advantage.
Taiwan President Tsai Ing-wen sought to refute “rumors” about the danger of investing
In the meantime, Taiwan President Tsai Ing-wen sought to refute “rumors” about the danger of investing in the island’s semiconductor industry by asserting that her administration was making every effort to maintain investments. She made her remarks in reference to the impending threat of the Chinese military against the island as Beijing tries to impose its sovereignty in the independent country.
Rick Tsai, the chief executive of MediaTek Inc., the largest chip designer in Taiwan, recently told Reuters that US-China tensions are already having an impact on certain manufacturers who are considering expanding a portion of their supply chain outside of Taiwan.