TLDR
- TSMC sold its remaining 1.11 million Arm shares at $207.65 each, raising $231 million
- The sale resulted in a $174 million impact on retained earnings
- TSMC originally invested ~$100 million in Arm’s 2023 IPO at $51 per share
- In 2024, TSMC had already sold 850,000 Arm shares for ~$102 million at $119.47 each
- Arm (ARM) stock fell 7.98% following the news; TSMC (TSM) dropped 3.12%
TSMC has fully exited its position in Arm Holdings, selling its remaining 1.11 million shares between April 28 and 29 at $207.65 each, for a total of $231 million.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The sale was made through TSMC’s subsidiary, TSMC Partners, and was disclosed in a filing to the Taiwan Stock Exchange on Wednesday.
The transaction resulted in a $174 million impact on retained earnings. TSMC confirmed it no longer holds any Arm shares following the disposal.
TSMC first bought into Arm during its September 2023 IPO, investing roughly $100 million at $51 per share. It joined several other strategic investors in backing the British chip designer’s return to public markets.
The relationship between the two companies goes back further than the IPO. TSMC had previously explored buying Arm outright when SoftBank, Arm’s owner, was looking for a buyer in the early part of the decade. TSMC ultimately dropped out after SoftBank struck a deal with Nvidia, though that deal collapsed in 2022.
TSMC Built a Strong Return on Its Arm Bet
From a pure numbers standpoint, TSMC did well on its Arm investment. Arm shares more than doubled after their IPO, giving TSMC the chance to exit at a healthy profit.
TSMC had already started trimming its position in 2024, selling 850,000 shares at $119.47 each for around $102 million. Combined with the latest $231 million sale, TSMC has now collected roughly $333 million from its Arm investment.
That compares to an initial outlay of around $100 million, meaning TSMC more than recouped its original stake across the two sales.
Market Reaction
The market didn’t take the news quietly. Arm stock dropped 7.98% on Tuesday. A major strategic investor exiting entirely can send a negative signal, even when the exit is purely financial.
TSM shares also slid 3.12%, closing at $392.34. TSMC’s Taiwan-listed stock added 3.66% on the domestic exchange.
TSMC’s filing described the transaction as a disposal of an equity investment, with no further explanation given for the timing.
Arm shares were already under pressure before the news broke. The exit by one of its key IPO backers added to that pressure.
As of Wednesday, TSMC holds zero shares in Arm Holdings.
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