TSMC exits Arm stake with $231M

Taiwan Semiconductor Manufacturing Co. has sold its remaining stake in Arm Holdings, closing out an investment it made during Arm’s 2023 stock market return. (reuters.com) TSMC said its subsidiary, TSMC Partners, sold 1.11 million Arm shares from April 28 to April 29 at $207.65 each. The transaction brought in about $231 million, according to the company filing cited by Reuters. (reuters.com) (marketwatch.com) The filing said the disposal added $174 million to retained earnings. After the sale, TSMC no longer held any Arm shares. (reuters.com) (morningstar.com) Arm designs chip blueprints that other companies license, while TSMC manufactures chips for customers that include many of Arm’s ecosystem partners. The share sale changes TSMC’s investment position, not that supplier-customer structure. (reuters.com) TSMC bought about $100 million of Arm stock at $51 a share in Arm’s initial public offering in 2023, when SoftBank brought the British chip designer back to the public market. TSMC was one of several strategic investors in that deal. (reuters.com) The company had already started cashing out before this week. Reuters reported that TSMC sold 850,000 Arm shares in 2024 at $119.47 each for about $102 million. (reuters.com) By the time of the final sale, the math had shifted sharply. TSMC’s last block sold at more than four times its IPO entry price, reflecting how far Arm shares had climbed since 2023. (reuters.com) Reuters said Arm shares fell 7.98% on Tuesday, the day before the filing was reported. TSMC described the move simply as a disposal of an equity investment. (reuters.com) The result is a clean exit: TSMC turned an IPO-era strategic holding into cash and now has no Arm shares left on its books. (reuters.com)