Why did Warren Buffett sell TSMC? | Part 2
There are plenty of speculations why Buffett sold TSMC...
Among the many reasons, I think the main factor could be Geopolitical Risk.
Businesses suffer from US-China tension.
The US influenced TSMC to stop making high-end chips for Huawei, crippling the latter.
After Berkshire invested in TSMC, the US banned Chinese firms from buying high-end AI and supercomputing chips in October 2022.
Losing China, the world's largest semiconductor chip importer will hurt.
TSMC reported 10% revenue from Chinese companies. It didn't include Apple's China-assembled chips. This demand may be affected by future restrictions.
TSMC is building new US plants to reduce geopolitical risk.
Less revenue and higher costs aren't good business.
The balloon incident showed how fragile US-China relations are.
Buffett avoids risk, so the additional measures and geopolitical risk may have made him reconsider his TSMC investment.
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HappyInvestor : Geopolitics and new huge capital investment for 2nm semiconductor plant in AZ and image sensor and automobile semiconductor plant in Kumamoto, Japan.
When people fight, lots of destruction and damages,.when they collaborate prosperity, friendship and happiness increase.