Berkshire Hathaway exited its entire Taiwan Semiconductor position citing location risks despite praising the company’s dominance in AI chips.
Warren Buffett’s Berkshire Hathaway sold its $4.1 billion stake in Taiwan Semiconductor Manufacturing (TSM) within two quarters, citing geopolitical concerns tied to Taiwan’s location. The move followed Buffett’s earlier praise for TSM as the world’s best-managed chip company.
TSM manufactures 90% of the world’s most advanced semiconductors, positioning it as the critical chokepoint for AI chip production. The company’s $2 trillion valuation underscores its pivotal role in supplying chips to major tech firms like Nvidia, AMD, and Microsoft.
The sale highlights how external risks can outweigh strong fundamentals in investment decisions, even for a company central to the AI supply chain.