Shares in Taiwan Semiconductor Manufacturing Company surged on Tuesday after Warren Buffett’s Berkshire Hathaway said it had bought a $4.1 billion stake in one of the world’s biggest chip makers.
In a filing with the US Securities and Exchange Commission on Monday, Berkshire Hathaway (BRKA) said it acquired about 60 million US depository shares of TSMC (TSM) in the three months ending September.
Shares of TSMC rose more than 8% in Taiwan on Tuesday.
“TSMC welcomes all investors with a propensity to buy and hold the company’s shares,” said a spokesman for the chipmaker.
TSMC accounts for about 90% of the world’s super-advanced computer chips, supplying technology giants including Apple (AAPL) and Qualcomm (QCOM).
Berkshire’s purchase of a stake in the Taiwanese chip giant comes as tensions between China and the self-governing democratic island are rising.
Taiwan has faced increasing military aggression from Beijing in recent months, and this has highlighted the critical role it plays in the global chip manufacturing industry.
Super-advanced semiconductor chips – such as those produced by TSMC – are difficult to manufacture due to the high cost of development and the level of expertise required, which means that much production is concentrated in just a few suppliers.
The company – widely dubbed in Taiwan as its “sacred mountain” – is so important to the island that its employees can apply for exemption from military reservist training, the Defense Ministry said.
Tensions between Washington and Beijing have also been on the rise lately over chips, with President Joe Biden imposing a wide array of controls on the sale of advanced chips and chip-making equipment to Chinese companies.
Experts fear that these controls could take the technological arms race between the United States and China to a whole new level.
Berkshire also owns large stakes in Apple, Bank of America, Coca-Cola, Chevron and American Express.
*Eric Cheung contributed to this text.
Source: CNN Brasil
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