Warren Buffett, a prominent wealthy individual, bought 60 million shares of chip manufacturer TSMC in an investment made through his investment firm Berkshire Hathaway worth $5 billion.the news is SEC filing (opens in new tab).
As the sixth richest person in the world and with a net worth of over $100 billion, Buffett should know a thing or two about investing.But his purchase was oddly timed, with companies such as Intel (opens in new tab) and GlobalFoundries (opens in new tab) It is announcing market share losses and job cuts as the semiconductor industry experiences a slowdown following its recent peak.
Still, he assumes he knows what he’s doing, and TSMC my own figure (opens in new tab) shows a 44% increase in revenue in the first 10 months of 2022 compared to the same period in 2021, with profits of $8.81 billion for the July-September months of this year. But in a conference call announcing the results in October, the company’s CFO, Wendell Huang, said he expects: – Cutting-edge 5nm technology. ”
Fortunately, the Taiwan-based company is the world’s largest dedicated independent semiconductor foundry, and has been largely owned by foreign investors since listing on the New York Stock Exchange in 1996. negotiated a one-year exemption from US export control regulations. (opens in new tab) You can also continue to order US-made equipment for use at our Nanjing manufacturing facility. Samsung and SK Hynix also received similar deals.
Chinese companies will account for 10% of TSMC’s revenue in 2021, up from 17% the year before. However, according to the business news site, Nikkei Asia (opens in new tab), TSMC’s stock price fell sharply due to the announcement of export regulations, dropping 35% this year, wiping out NT$1 trillion from the company’s market capitalization. For context, one dollar is 31 NT$.