Many analysts don't understand Warren's rationale for selling TSMC shares. Thus, we'll reveal the truth here.
The latest production cost and margin for Taiwan TSMC:
5nm chip production cost: US$6,400 per wafer
3nm chip production cost: US$14,600 per wafer
Profit margin: 50-60%
Since US TSMC will begin its first 5nm chip production, we'll provide the related projected statistics.
Projected US 5nm chip: US$11,800
Projected US margin: 15%
It is a no brainer that Taiwan TSMC will be subsidizing US TSMC in the future when the US TSMC starts its operations. No wonder Warren Buffett sold TSMC shares after making a comparative analysis.
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