Following the pullout of Warren Buffett’s Berkshire Hathaway, former vice president Al Gore’s investment firm Generation Investment Management has dumped all its stock in TSMC.
Though the company didn’t specifically mention any reason for its stock disposal, it talked about geopolitical tensions in the Taiwan strait and America’s vulnerability to chip suppliers resulting from this. Instead, it quintupled its investment in the chip maker Texas Instruments, as noted in the recent SEC filing.
Relinquishing TSMC Stock For Good
Last year, Warren Buffett’s Berkshire Hathaway dumped billions of dollars of its investment in TSMC – which shook the other investment firms to rethink their considerations about the chip maker in their portfolios.
Well, after evaluating enough, former vice president Al Gore’s Generation Investment Management has now relinquished its investment in TSMC too! In its SEC filing made last week, the investment firm noted dumping $22 million worth of American depositary receipts.
Well, this is the entire stock Generation Investment Management is holding in TSMC, unlike Berkshire Hathaway – which held a few shares after dumping billions. Yet, it’s significant, and it’s mostly due to the supply chain issues in the semiconductor industry, say experts.
Though the company hasn’t mentioned any specific reason yet, its stock disposal comes after its Q4 2022 investor letter – where the firm’s co-chief investment officers cited geopolitical uncertainty in the Taiwan Strait concerning.
This makes the US vulnerable to chip suppliers, and this cutting off commercial ties is seen as a better move. Instead, it quintupled its investment in Texas Instruments, as noted in the recent SEC filing.
This aside, TSMC facing manufacturing and location issues triggered the investment decision further. Though it’s supplying chips to some of the big companies like Apple, AMD, Nvidia, and Qualcomm, it’s subject to usual industry risks – resulting from pandemic-related lockdowns and trade bans.