Lede

Warren Buffett sold most of Berkshire Hathaway’s stake in TSMC due to geopolitical tensions and the company's preference for deploying capital elsewhere.

Summary

• Berkshire Hathaway sold 86% of its shares in TSMC, which was considered unusual due to Buffett's reputation for making long-term bets.
• Buffett stated that TSMC was well-managed, but the company had "better places" to deploy its capital.
• TSMC is a key player in the semiconductor industry, supplying Apple and Qualcomm, and mass produces the most advanced semiconductors in the world.
• The company is considered a national treasure in Taiwan and plays a vital role in the global economy, earning it the nickname "silicon shield" against a potential military invasion by Beijing.
• Tensions between Taiwan and China have recently escalated after China conducted military exercises simulating "joint precision strikes" on the island.
• Taiwan and China have been governed separately since the end of a civil war more than seven decades ago.