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Saturday, March 4, 2023

Why did Warren Buffett sell TSMC shares?

Many analysts don't understand Warren's rationale for selling TSMC shares.  Thus, we'll reveal the truth here.

Warren Buffett sold TSMC shares after comparing the latest production costs and profit margins between Taiwan TSMC and US TSMC.

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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