Key insights
- TSMC fully exited its position in Arm Holdings, selling 1.11 million shares for $231 million. This move recoups TSMC's initial investment made during Arm's IPO. While the sale itself has limited direct impact, it signals a potential shift in TSMC's strategic focus within the semiconductor ecosystem, possibly reducing direct alignment with Arm's future.
Investing.com-- Taiwan Semiconductor Manufacturing Co (NYSE:TSM), or TSMC, said on Wednesday it had disposed of the entirety of its stake in British chip designer Arm Holdings (NASDAQ:ARM).
TSMC, through a unit, sold 1.11 million Arm shares at $207.65 each, at a total consideration of $231 million, the chipmaker said in a filing to the Taiwan Stock Exchange.
The company no longer holds any shares in Arm after the disposal, TSMC said.
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The world’s largest contract chipmaker had expressed interest in buying Arm after owner SoftBank Group Corp. (TYO:9984) attempted to sell the company in the early part of the decade. But TSMC dropped out after Softbank entered a deal with NVIDIA Corporation (NASDAQ:NVDA), although the deal largely fell through in 2022.
TSMC had invested up to $100 million Arm’s 2023 initial public offering. But it had then sold 850,000 Arm shares in 2024 for about $102 million.
The sale saw TSMC effectively recoup the entirety of its investment in Arm, given that the British chip designer’s shares had more than doubled after their IPO.