Chipping In: Warren Buffett’s Berkshire Hathaway Takes $4 Billion Stake In Taiwanese Semiconductor Giant TSMC

U.S. billionaire Warren Buffett’s conglomerate Berkshire Hathaway disclosed in a securities filing Monday that it had taken a stake worth more than $4 billion in TSMC, the world’s leading chipmaker.

Berkshire Hathaway bought about 60 million American depositary receipts of Taiwan’s most valuable company in the three months ended September, the Omaha-based conglomerate said in a filing with the U.S. Securities and Exchange Commission. The lowest ADR price in the third quarter was $68.56 (on September 30), meaning Berkshire Hathaway paid at least $4.1 billion for the stake.

TSMC was founded by Taiwanese billionaire Morris Chang in 1987, pioneering the contract chip making business. Headquartered in the industrial hub of Hsinchu, TSMC is the biggest manufacturer of the world’s most advanced chips, which are used in smartphones, computers, servers, cars and military equipment.

TSMC is currently building a $12 billion chip plant in Arizona, closer to its Silicon Valley clients like Apple and Nvidia, and is planning to build a factory in Japan, near some of the world’s top manufacturers of cars and electronics.

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