TSMC shares tumble after Buffett’s Berkshire holdings were trimmed

(Bloomberg) – Shares of Taiwan Semiconductor Manufacturing Co. fell as much as 3.7% after a filing showed Warren Buffett’s Berkshire Hathaway Inc. cut its stake in the chip giant.

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The Omaha-based conglomerate reduced its holdings of TSMC American depositary receipts by 86% last quarter to 8.29 million worth $617.7 million, according to the latest 13F filing.

Shares of the world’s largest chip foundry surged higher in Taipei in November after it was revealed Buffett had acquired a stake worth about $5 billion. The purchase was taken as a sign that the legendary investor thought the stock had bottomed after a sell-off of more than $250 billion.

However, the outlook for the semiconductor industry remains worrying as investors brace for a global economic slowdown. TSMC last month announced plans to cut spending and signaled that this quarter could see its first revenue decline in four years.

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