Buffet buying TSMC shares

Does anyone here really understand why Buffett bought TSMC? I have personally thought of that space as very competitive with leadership change every few years (Intel few years ago, IBM before that). 

We already have excess chip supply and will have even more in a year's time. 

Doesn't look like your typical Buffett purchase.

4 Comments
 

Excess chip supply?

How disconnected are you from the world.

Do research before posting.

TSMC is a great investment. Not only are they the largest foreign Contractor for the USA with hundreds of long term contracts, they are also building a 40 billion plant in AZ and are heavily subsidized by US Taxpayers despite being a foreign company.

Fiscal year: Revenues are up 39% and earnings are up 66%.

Great investment into the future of the world.

 
Captain Rex

Excess chip supply?

How disconnected are you from the world.

Do research before posting.

TSMC is a great investment. Not only are they the largest foreign Contractor for the USA with hundreds of long term contracts, they are also building a 40 billion plant in AZ and are heavily subsidized by US Taxpayers despite being a foreign company.

Fiscal year: Revenues are up 39% and earnings are up 66%.

Great investment into the future of the world.

Do some research buddy before posting. There is a massive oversupply in semiconductors right now, everyone is navigating excess inventory (inc TSMC). Orders are being cut and utilization rates are falling. Obviously, you dont follow the sector.

 

There is an excess of specific types of semiconductors, specifically smartphone and memory chips.

Regardless, following Moores Law these chips will become obsolete next year, and demand for latest generation technology will soon revamp.

This industry is cyclical, consumers understand that it may not be worth it to buy the latest available tech right now when in 2 months, one twice as powerful will be released.

 

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