Key Highlights
- Taiwan Semiconductor liquidated 1.11 million remaining Arm shares at $207.65 per share, generating $231 million
- The transaction triggered a $174 million adjustment to retained earnings
- TSMC’s initial Arm investment totaled approximately $100 million during the 2023 IPO at $51 per share
- Earlier in 2024, the chipmaker offloaded 850,000 Arm shares at $119.47, collecting roughly $102 million
- Arm (ARM) shares tumbled 7.98% on the announcement; TSMC (TSM) declined 3.12%
Taiwan Semiconductor Manufacturing Company has completely divested from its Arm Holdings investment, liquidating its final 1.11 million shares on April 28-29 at $207.65 per share, generating $231 million in proceeds.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The divestment was executed through TSMC Partners, the company’s subsidiary, according to a regulatory filing submitted to the Taiwan Stock Exchange on Wednesday.
TSMC recorded a $174 million effect on its retained earnings from the transaction. The semiconductor giant verified that it holds zero Arm shares after completing the sale.
The chipmaker initially acquired its Arm stake during the chip designer’s September 2023 public offering, allocating approximately $100 million at $51 per share. TSMC was among multiple strategic technology partners supporting the British company’s stock market comeback.
The commercial ties between these semiconductor giants extend well beyond the IPO participation. In the early 2020s, TSMC had actively considered acquiring Arm completely when SoftBank sought potential buyers. However, TSMC withdrew from contention after SoftBank reached an agreement with Nvidia, though that proposed acquisition eventually fell through in 2022.
Substantial Profits From Strategic Arm Position
Financially, TSMC achieved impressive results from its Arm holdings. Arm shares surged over 100% following their public debut, creating an attractive exit opportunity for TSMC.
The chipmaker had begun reducing its Arm exposure during 2024, divesting 850,000 shares at $119.47 apiece for approximately $102 million. When combined with this latest $231 million disposal, TSMC has generated total proceeds of roughly $333 million from its Arm position.
Against the original investment of approximately $100 million, TSMC achieved more than a threefold return across both transactions.
Stock Market Response
Financial markets reacted negatively to the disclosure. Arm’s stock plunged 7.98% on Tuesday. When a significant strategic stakeholder completely exits their position, it often triggers investor concerns, regardless of whether the decision was purely financial.
TSM shares fell 3.12%, settling at $392.34. Meanwhile, TSMC’s Taiwan-listed shares gained 3.66% on the local exchange.
TSMC’s regulatory submission characterized the move as an equity investment disposal, offering no additional rationale for the sale timing.
Arm’s stock was experiencing downward momentum even before this announcement emerged. The complete exit by a prominent IPO participant intensified the selling pressure.
Following Wednesday’s disclosure, TSMC maintains no ownership stake in Arm Holdings.
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