Warren Buffett's Berkshire Hathaway buys $4 billion stake in chip giant TSMC
Billionaire Warren Buffet's conglomerate, Berkshire Hathaway Inc, has announced that they purchased more than $4.1 billion stake in Taiwan Semiconductor Manufacturing (TSMC).
After Berkshire Hathaway Inc. spotted in SEC filings that it purchased a significant stake in the Taiwanese chip manufacturer, shares of the Taiwan Semiconductor Manufacturing Company (TSMC) were up in the aftermarket.
According to details, Billionaire Warren Buffet's conglomerate, Berkshire Hathaway Inc, purchased $4.1 billion stake in TSMC, which led to Taiwan's TSMC shares rose more than %6 as the news raised for the world's biggest chipmaker, whose shares hit a two-year low last month amid a sharp slowdown in global chip demand and economic crisis.
In a statement announcing its U.S.-traded equity investments as of September 30, Warren Buffet's Berkshire reported that it owns approximately 60.1 million shares of TSMC. After this, TSMC reversed falling trend and closed at $77 in aftermarket trading.
The Berkshire Hathaway is also known to be very cautious in its investment. Moreover, the company mostly disregards technology stocks. Therefore, Hathaway's stake purchase in TSMC is a really rare spot, which has been a great milestone for TSMC.
Following this news, TSMC is expected to utilize from this investment to advance the chip technology and market. The firm is also reported to start 3nm production this year, along with building a new factory in the U.S..
