Taiwan Semiconductor Manufacturing Company stock rose sharply by 8% after Warren Buffett’s Berkshire Hathaway revealed that it has invested $4.1 billion in one of the biggest chipmakers in the world.
TSMC depository shares were acquired by Berkshire Hathaway in the three months ending September, according to a document filed with the US Securities and Exchange Commission.
Berkshire purchased a share in the Taiwanese chip powerhouse as tensions between Taiwan and China are escalating. Due to Beijing’s increasing military hostility toward Taiwan in recent months, the crucial role Taiwan plays in the world’s chip manufacturing industry has come to light. Due to the high cost of development and the degree of expertise necessary, it is challenging to build super-advanced semiconductor chips like those made by TSMC, which is why the majority of the manufacturing is concentrated in just a few vendors.
President Joe Biden also recently imposed a broad set of regulations on the sale of advanced semiconductors and chip-making equipment to Chinese enterprises, which has contributed to the recent rise in tensions between Washington and Beijing over chips. The tech weapons race between China and the United States might potentially reach a whole new level as a result of these regulations, experts worry.
Additionally, Berkshire holds sizable investments in American Express, Apple, Bank of America, Coca-Cola, and Chevron.