Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest company that makes chips for others, has sold all its remaining shares in Arm Holdings. This news came from a company document filed on Wednesday.
TSMC Partners, a part of TSMC, sold 1.11 million Arm shares between April 28 and 29. Each share went for $207.65, bringing in a total of about $231 million, the filing showed. After this sale, TSMC no longer owns any shares in Arm. The company stated that this sale was part of getting rid of an investment it held.
TSMC had originally invested around $100 million in Arm when the chip designer first offered its shares to the public in 2023. They bought shares at $51 each, joining several other important investors. TSMC has been slowly selling off its shares. It sold 850,000 shares in 2024 for $119.47 each, which added up to about $102 million, according to earlier filings.
This latest move means TSMC has fully exited its position in Arm. While TSMC and Arm are both major players in the semiconductor industry, their business relationship primarily involves TSMC manufacturing chips based on Arm’s designs. This sale suggests a financial decision by TSMC to cash in on its investment rather than a change in their core business partnership.
The significant increase in Arm’s share price since its initial public offering has allowed TSMC to make a substantial profit from its investment. This kind of divestment is common for large companies that invest in other firms during their early public stages.
The decision to sell all shares could free up capital for TSMC to invest in its own core operations or other strategic areas. As the demand for advanced chips continues to grow, TSMC is heavily investing in new technologies and factory expansions to maintain its leading position in the global chip manufacturing market.
