Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world's largest contract chip manufacturer, disclosed in its latest company documents that it has sold all its shares in Arm Holdings, officially ending its equity investment relationship in the chip design company.
Documents show that TSMC Partners, a subsidiary of TSMC, sold 1.11 million Arm shares between April 28 and 29. The average transaction price was US$207.65 per share, and the total cash amount was approximately US$231 million. After the transaction is completed, TSMC no longer holds any shares in Arm.
According to the disclosure, this equity disposal had an impact of US$174 million on TSMC’s retained earnings. The company defined the transaction as part of the “equity investment disposal” in the document.
TSMC took a stake in the chip design company during Arm's initial public offering (IPO) in 2023. At that time, it invested approximately US$100 million at a subscription price of US$51 per share, and participated with a number of strategic investors. Since then, TSMC has gradually reduced its holdings in Arm.
The document review stated that TSMC sold 850,000 Arm shares in 2024. The average transaction price at that time was US$119.47 per share, cashing out approximately US$102 million. With this further reduction and clearing of its holdings, TSMC has completed its complete exit from Arm’s equity.
Arm's stock price fell 7.98% on Tuesday, the trading day before the latest round of TSMC's shareholding reduction news was disclosed.
This transaction does not change TSMC's core foundry status in the global semiconductor industry chain, but it shows that it continues to make proactive adjustments in financial investment and equity layout, and achieves capital withdrawal and book earnings lock-in through phased withdrawals from equity investments.