Berkshire Hathaway, the investment giant led by Warren Buffett, has exited its entire stake in Taiwan’s dominant chip producer, TSMC, citing concerns over the company’s long‑term stability and the broader political risk environment. The disclosure comes as part of routine portfolio updates reported by major agencies, including Bloomberg. The move marks a notable shift for Berkshire, which has long valued TSMC as a key hub in its tech equity strategies.
During his annual meeting with shareholders, Buffett acknowledged that Berkshire’s priorities have evolved and that the firm’s capital allocation now reflects a more cautious view of cross‑border risks related to Taiwan and China. He indicated that Berkshire’s exposure to Japan remains a more meaningful part of its investment calculus, a stance he described as both a practical reality and a belief reflected in past statements that may have been shaped by the company’s ongoing capital commitments in Asia.
Bloomberg reports that Berkshire Hathaway’s stock position in TSMC was reduced in the most recent quarter, with a substantial decrease from the prior year’s level. The trimming aligns with Berkshire’s broader strategy of periodically reevaluating large, concentrated holdings in high‑tech manufacturers that sit at the intersection of geopolitics and global supply chains. In addition to the TSMC shift, Berkshire continues to reassess sector exposures that could be sensitive to regional tensions and regulatory changes.
Buffett has repeatedly underscored that geopolitical frictions, especially the China‑Taiwan dynamic, complicate the calculus of investing in TSMC as a stable, long‑term beneficiary for a diversified US portfolio. He has also pointed to the implications for major clients, including Apple, which relies heavily on TSMC for advanced processor fabrication. The reliance is a central theme in the discussion about risk concentration and supply chain resilience for large technology platforms that serve millions of customers globally.
Despite Berkshire’s exit from the TSMC position, Apple remains a significant, though indirect, beneficiary of Buffett’s investment approach. Buffett’s continued stake in Apple reflects a conviction about the company’s core ecosystem and brand power, even as the company itself seeks to diversify its manufacturing footprint beyond Taiwan and reduces its exposure to any single supplier. The broader industry narrative is increasingly about diversification of suppliers, regional manufacturing footprints, and strategic partnerships that can withstand geopolitical shocks.
Industry observers note that Apple has been pursuing a strategy to broaden its manufacturing base, including exploring alternatives to reduce dependence on any single region or supplier. These moves are part of a wider trend among technology leaders to build more resilient supply chains, with investments in new facilities and partnerships in different countries intended to balance cost, risk, and capacity. The conversations around this topic continue to shape investor sentiment, even as individual holdings shift within Berkshire’s diversified portfolio.
In summary, Berkshire Hathaway’s decision to divest its entire TSMC stake mirrors a careful assessment of geopolitical risk and supply chain exposure within a multi‑year investment horizon. While Buffett remains a prominent investor in Apple, the firm’s stance highlights a preference for broader diversification and a cautious approach to concentrated bets tied to regional tensions. The evolving plan to relocate production lines and reduce reliance on a single semiconductor supplier reflects a strategic response to a rapidly changing global tech landscape. The market reaction so far appears restrained, with investors weighing the implications for tech stocks, currency dynamics, and the ripple effects on supply chains across North America and beyond, all within the broader context of Berkshire’s long‑standing emphasis on risk management and prudent capital stewardship. The broader signal to the market emphasizes resilience and diversification in a world where geopolitical and regulatory shifts can swiftly alter the risk/return profile of even well‑established investments, according to contemporary industry analysis and reported insights from Bloomberg.