As Arm's stock price fluctuates, Taiwan Semiconductor completely liquidates its holdings, cashing out $230 million

Zhitong
2026.04.29 06:18

Taiwan Semiconductor announced on Wednesday that it has sold all of its shares in Arm Holdings, with a total transaction amount of approximately $231 million. This reduction in holdings will impact Taiwan Semiconductor's retained earnings by about $174 million. Taiwan Semiconductor participated in the subscription at $51 per share when Arm went public, and recently decided to liquidate its position due to fluctuations in Arm's stock price and market concerns over AI stocks. This move may reflect strategic investors reassessing their financial holdings in the turbulent semiconductor market

According to the Zhitong Finance APP, Taiwan Semiconductor Manufacturing Company (TSMC.US), the world's largest chip foundry, disclosed in an announcement submitted on Wednesday that it has completely sold all remaining shares of Arm Holdings (ARM.US).

The document shows that TSMC Partners, a subsidiary of TSMC, sold 1.11 million shares of Arm stock at a price of $207.65 per share from April 28 to 29, with a total transaction amount of approximately $231 million. This disposal had an impact of about $174 million on TSMC's retained earnings. After the transaction, TSMC no longer holds any shares of Arm.

It is understood that at the time of Arm's IPO in 2023, TSMC participated in the subscription with several strategic investors, investing approximately $100 million at a price of $51 per share. Previous disclosure documents show that TSMC had already begun to gradually reduce its holdings: in 2024, it sold 850,000 shares at a price of $119.47 per share, cashing out approximately $102 million.

TSMC stated in the announcement that this reduction is part of its equity investment disposal plan.

The timing of the transaction coincides with fluctuations in Arm's stock price

TSMC's decision to liquidate comes against the backdrop of significant fluctuations in Arm's stock price.

Due to a cooling of investor enthusiasm in certain areas of artificial intelligence (AI) trading, as well as a report about OpenAI not meeting certain internal goals, there has been widespread concern in the market regarding AI-related stocks, leading to Arm's stock price dropping by about 8% on both Monday and Tuesday.

Although this exit does not signify a rupture in the core cooperative relationship within the semiconductor industry, the transaction remains a focal point of attention. Given Arm's central narrative in the AI and mobile computing sectors and TSMC's critical role in advanced chip manufacturing, TSMC's complete exit from its holdings may be seen as a signal of how strategic investors are reassessing their financial holdings in an increasingly turbulent semiconductor market

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