Buffett's Berkshire Hathaway Buys $4.1-B TSMC Stake

Shares of Taiwan Semiconductor Manufacturing Company surged on Tuesday after Warren Buffett’s Berkshire Hathaway disclosed that it had purchased a $4.1 billion stake in one of the world’s largest chipmakers, Diksha Madhok reported for CNN Business.

Photo Insert: In a filing with the United States’ Securities and Exchange Commission on Monday, Berkshire Hathaway (BRKA) said it acquired about 60 million American depository shares of TSMC (TSM) in the three months ended September.

In a filing with the United States’ Securities and Exchange Commission on Monday, Berkshire Hathaway (BRKA) said it acquired about 60 million American depository shares of TSMC (TSM) in the three months ended September.

Reporting for Reuters, Jonathan Stempel said the investment is a “rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate.” Shares of TSMC were up over 8% in Taiwan on Tuesday.

“TSMC welcomes all investors with the propensity to buy and hold TSMC’s stock,” a spokesperson for the chipmaker said. TSMC accounts for an estimated 90% of the world’s super-advanced computer chips, supplying tech giants like Apple and Qualcomm.

Berkshire’s purchase of a stake in the Taiwanese chip giant comes as tensions between China and the self-governed democratic island are escalating.

Taiwan has been facing growing military aggression from Beijing in recent months, and that has thrown a spotlight on the critical role it plays in the global chipmaking industry.

Super-advanced semiconductor chips — like the ones produced by TSMC — are difficult to make because of the high cost of development and the level of knowledge required, meaning much of the production is concentrated in just a handful of suppliers.

Berkshire also owns large stakes in Apple, Bank of America, Coca-Cola, Chevron, and American Express, Eric Cheung also reported for CNN Business.

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