Taiwan Semiconductor is one of the “best managed” world’s most important companies

Finance


Billionaire investor Warren Buffett had a lot to say at Berkshire Hathaway’s (BRK-A, BRK-B) annual meeting on Saturday by not applauding US semiconductor makers.

Instead, Buffett praised his former chip play, Taiwan Semiconductor (TSM).

“Taiwan Semiconductor is one of the most well-managed companies in the world, one of the most important,” Buffett, 92, said at a crowded CHI Health Center in Omaha, Nebraska. Didn’t like the place and re-evaluated it… [but] No one in the chip industry is in their league, at least from my point of view. ”

Legendary buy-and-hold investor Buffett surprised some observers by quickly selling off a sizeable position at TSMC. Berkshire said in February that he had sold his 86% stake in Taiwan Semiconductor, which he built for about $4.1 billion a few months ago.

Berkshire now owns 0.2% of Taiwan Semiconductor.

Buffett said in April that he sold the position amid heightened geopolitical tensions between China and Taiwan, as well as between China and the United States.

“We have great people and great competitiveness, but I would love to find that in the US,” Buffett said Saturday.

Billionaire investor Warren Buffett speaks at a fundraising event for the charity Girls Inc. in Omaha, Nebraska, Monday, November 14, 2011. Buffett, the chairman and CEO of Berkshire Hathaway, said his company will buy about $10.7 billion of his IBM stock this year, giving him more than 5% of his stake in the tech company. said he did.  (AP Photo/Nati Harnik)

Billionaire investor Warren Buffett speaks in Omaha, Nebraska, Monday, November 14, 2011. (AP Photo/Nati Harnik)

Taiwan Semiconductor is considered a dominant player in the advanced chip manufacturing field. The company supplies chips to tech giants such as Apple (AAPL) and Qualcomm (QCOM).

Analysts have praised the company for capitalizing on major changes in technology, especially the demand for 5G wireless and high-speed data centers.

The company aims to spend up to $36 billion on capital expenditures this year.

TSMC’s stock is up 120% over the past five years, beating the S&P 500’s 55% gain.

Chip rivals such as Intel (INTC) are looking to regain market share by building new factories in the US and improving innovation. Other companies such as Qualcomm and AMD (AMD) have also started talking about initiatives in the popular artificial intelligence space.

Intel CEO Pat Gelsinger said on Yahoo Finance Live:

Brian Sotzi Editor-in-chief of Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and LinkedInAny tips on deals, mergers, activist situations, etc? Email brian.sozzi@yahoofinance.com

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