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TSMC shares fall on news of Berkshire sale
Taiwan Semiconductor Manufacturing Company's share price fell by almost 4% on Wednesday after it was revealed that Warren Buffett's Berkshire Hathaway slashed its stake in TSMC in the fourth quarter of 2022.
Berkshire cut its position in TSMC by 86.2% to 8.29 million sponsored American depositary shares and that saw the contract chipmaker's American Depository Receipts fall by 4% in US after-hours trade on Tuesday.
Berkshire revealed that it had bought more than US$4.1 billion worth of TSMC stock some three months ago.
Analysts in Taiwan are reminding investors to pay attention to TSMC's performances instead of Warren Buffett's decision. Kirk Yang of Kirkland Capital says the fund's decision likely speaks to a greater lack of confidence in the company's future profitability, particularly after it opened its facilities in Arizona. But semiconductor analyst Lu Xing-zhi says Berkshire's move happened in the fourth quarter last year and since then TSMC's ADRs have almost risen 30%. He says it's important to watch the changes in TSMC's capital and demands for its 5 and 7 nanometer products.
