Warren Buffett's Berkshire Hathaway Bought and Sold Taiwan Semiconductor Shares Within Six Months
By
Rich Duprey
A five-star bake. Worth schmearing, sharing, saving.
Summary
Warren Buffett's Berkshire Hathaway purchased and then sold shares of Taiwan Semiconductor Manufacturing (TSM) within six months during late 2023 and early 2024. TSM is the dominant manufacturer of advanced semiconductors, producing roughly 90% of the world's most advanced chips and serving as the critical manufacturing partner for all major AI companies including Nvidia, AMD, Amazon, Microsoft, and Alphabet. The article explores why Buffett made this quick investment and exit, analyzing TSM's monopoly-like position in AI chip manufacturing, geopolitical risks (particularly China-Taiwan tensions), and the investment rationale behind the move.
Key quotes
· 3 pulledEvery major AI player — Nvidia, Advanced Micro Devices, Broadcom, Amazon, Microsoft, and Alphabet — depends on a single manufacturer to turn advanced chip designs into physical products: Taiwan Semiconductor Manufacturing.
Today, Taiwan Semi is worth more than $2 trillion and manufactures roughly 90% of the world's most advanced semiconductors.
In many ways, it is the most important company in the AI supply chain.
You might also wanna read
US Ties Taiwan Tariff Relief to TSMC's Investment in Intel
The US administration is reportedly linking a reduction in trade tariffs on Taiwan to TSMC's significant investment in the US, including acq
notebookcheck.net·10mo ago
Berkshire Hathaway Acquires Bell Laboratories
Bell Laboratories has been acquired by Berkshire Hathaway, with the transaction closing on July 31. The company will continue to operate ind
pctonline.com·10mo ago
TSMC CEO says chipmaker is struggling to meet AI-driven demand despite US factory expansion
TSMC, the world's largest semiconductor manufacturer, is struggling to meet surging customer demand driven by the AI boom, even with its ong
The Verge·12d ago
Berkshire Hathaway Sells $1.7 Billion in Amazon Stock, Reducing Stake by 77%
Warren Buffett's Berkshire Hathaway has significantly reduced its stake in Amazon by 77%, selling 7.7 million shares worth approximately $1.
finbold.com·3mo ago
AMD CEO Reveals Higher Costs for Chips from TSMC's US Plant
AMD CEO Lisa Su stated that chips from TSMC's US plant cost 5% to 20% more compared to those from Taiwan. AMD expects its first chips from T
bloomberg.com·10mo ago
AMD CEO Discusses Higher Costs of U.S.-Made TSMC Chips Compared to Taiwan-Sourced Alternatives
AMD CEO Lisa Su discusses the higher costs of U.S.-made TSMC chips compared to Taiwan-sourced alternatives, emphasizing the importance of su
tomshardware.com·10mo ago