Berkshire Hathaway increases its portfolio with TSMC shares
The U.S. investment company Berkshire Hathaway acquired shares of Taiwan’s TSMC for about $ 5.1 billion. After the information about the deal, the value of the semiconductor manufacturer’s securities grew by 9.4 percent. Such dynamics were a record in the sector of intraday rise in price at the stock exchange in Taiwan for the last 2 years.
Interestingly, earlier Warren Buffett was rather skeptical about the technology sector. The businessman explained his reluctance to invest in this market to his ignorance of what was going on there. However, the perspective of the industry has changed his point of view, and over the last few years, Berkshire’s portfolio is regularly replenished with companies from IT and related sectors. For example, the investment giant’s most significant asset is Apple.
TSMC is engaged in the production of microchips, without which it is difficult to imagine most modern products. The company is a leader in terms of production volumes and supplies such giants of the electronics market as Nvidia and Qualcomm. In addition, the company exclusively produces components for Apple. Therefore, Berkshire’s interest in the Taiwanese company is quite obvious, especially since world demand for semiconductors continues to grow, and supply is still not keeping up with it. Microchips in today’s world play a key role in progress, they are used in electric transport, and artificial intelligence cannot be fully applied and developed without them.
According to Berkshire, the investment company owns more than 60 million shares of TSMC.
The market capitalization of the Taiwan manufacturer is estimated at more than 61 billion dollars. The staff is about 65 thousand people.
The company was founded in 1987 and during this time it has opened production of semiconductor products in different countries, including the United States, India, the Netherlands, and others. The stock has been traded on the stock exchange since 1994.
The manufacturer has advanced research centers, where new technologies are being studied to create microchips that are smaller in size but with better performance, as well as new technologies for their production, which will help reduce process costs. Most of the innovative solutions in the semiconductor sector belong to TSMC, which allows it to occupy the leadership in the global market for a long time and actively develop.
The corporation is ahead of its competitors due to the fact that a huge part of the income goes to the research division. For a long time, the company has been working on reducing the size of transistors, and it was the first to achieve success. Thus, the microchip from TSMC contains a large number of transistors, which improves the speed and power of the element.