Warren Buffett explains decision to sell TSMC stake amid geopolitical tensions
Warren Buffett sold most of Berkshire Hathaway’s stake in TSMC due to geopolitical tensions and the company's preference for deploying capital elsewhere.
- Berkshire Hathaway sold 86% of its shares in TSMC, which was considered unusual due to Buffett's reputation for making long-term bets.
- Buffett stated that TSMC was well-managed, but the company had "better places" to deploy its capital.
- TSMC is a key player in the semiconductor industry, supplying Apple and Qualcomm, and mass produces the most advanced semiconductors in the world.
- The company is considered a national treasure in Taiwan and plays a vital role in the global economy, earning it the nickname "silicon shield" against a potential military invasion by Beijing.
- Tensions between Taiwan and China have recently escalated after China conducted military exercises simulating "joint precision strikes" on the island.
- Taiwan and China have been governed separately since the end of a civil war more than seven decades ago.