Warren Buffett Dumps 86% of TSMC Shares
Warren Buffett Dumps 86% of TSMC Shares
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If the reason was a potential invasion of Taiwan by China, then wouldn’t Apple stock have a good chance of plummeting as well? Potential sanctions could severely disrupt Apple’s manufacturing in China, given that the U.S. is currently a sworn protector of Taiwan.
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If the reason was a potential invasion of Taiwan by China, then wouldn’t Apple stock have a good chance of plummeting as well?
Many manufacturers have been in the process of migrating large chunks of their manufacturing out of China to avoid tariffs. Some foreign companies like Samsung that had manufacturing operations in China are moving out because China is refusing to renew their leases or approve expansions.
Sanctions against China may not hurt too badly, depending on how far along companies are on their Chexit strategy.
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Many manufacturers have been in the process of migrating large chunks of their manufacturing out of China to avoid tariffs. Some foreign companies like Samsung that had manufacturing operations in China are moving out because China is refusing to renew their leases or approve expansions.
Sanctions against China may not hurt too badly, depending on how far along companies are on their Chexit strategy.
You might be thinking of another manufacturer, but Samsung closed its last Chinese based plant in 2019, most of their tech is now made in Mexico or Vietnam.
Lot of the early moves out of China were for tariffs, which Apple really didnt care because they have a cult-like following, people are paying $1500+ for a phone and dont care about the tariff increases. Then moves increase in ’20-’21 due to COVID and supply restrictions, and today the moves out of China are increasing due to government sanctions and looming war which no one is immune to and I believe is the #1 underlying issue to the stock sell-off. If I had anything invested in China, I’d be pulling it ASAP, things arent going to get any better, but much much worse!
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If the reason was a potential invasion of Taiwan by China, then wouldn’t Apple stock have a good chance of plummeting as well? Potential sanctions could severely disrupt Apple’s manufacturing in China, given that the U.S. is currently a sworn protector of Taiwan.
Yep, that explanation makes no sense. Apple’s put everything in one basket, China, and if there is any geopolitical escalation, Apple is toast. Further, unlike Qualcomm, all of Apple’s chips are also made by TSMC in Taiwan — Apple is TSMC’s largest customer — Apple sales accounts for as much as 30% of TSMC sales.
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Many manufacturers have been in the process of migrating large chunks of their manufacturing out of China to avoid tariffs. Some foreign companies like Samsung that had manufacturing operations in China are moving out because China is refusing to renew their leases or approve expansions.
Sanctions against China may not hurt too badly, depending on how far along companies are on their Chexit strategy.
As pointed out by others, Samsung has been pulling out of China for almost a decade — they closed the last smartphone factory in 2019 and they are still in process closing last few remaining business units, eg, shipbuilding/heavy industry in Ningbo, China.
Samsung (and SK Hynix, Micron, and even Intel who recently sold their Chinese NAND business to SK) does have a NAND production in Xi’an, opened not too long ago, but it would be extremely costly for both Samsung and the Xi’an’s local gov’t to close that now. Samsung $18+B NAND plant has enormous impact on local economy, so it doesn’t make any sense for Chinese gov’t to harasse them with permits. The problem is with the Biden’s chip ban against China — Samsung received a one-year reprieve from Biden’s recent export restriction on chip-making equipment, but beyond that we don’t know what their fate is.
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