Nikkei reported that TSMC is widely viewed as Taiwan’s “silicon shield” against a potential Chinese invasion, as Beijing is also heavily dependent on semiconductors from Taiwan and a military assault could decimate the TSMC’s manufacturing facilities.

Berkshire Hathaway purchased shares in TSMC between July and September 2022 as tensions between the U.S. and China reached a fever pitch in the weeks before and after former House Speaker Nancy Pelosi’s visit to Taipei in August, in an intended demonstration of democratic solidarity.

In an interview about plans to increase investment in leading Japanese trading firms, Buffett told Nikkei that he viewed TSMC as a well-managed company but that Berkshire Hathaway could better allocate its resources elsewhere.

Berkshire Hathaway disclosed in February that it sold 86% of its shares in TSMC near the end of 2022, according to Nikkei. The quick turnaround broke away from the 92-year old investment tycoon’s usual strategy of making longer-term bets.

China staged its largest ever war games after Pelosi touched down in Taipei on 2 August, roundly denouncing the visit as violating its sovereignty.

Beijing views Taiwan, which has operated under an independent, democratic government for decades, as a breakaway province and pledged “reunification” by force if necessary. US intelligence assesses China will move on Taiwan within the coming decade, although if the Taiwanese are backed by the US the Chinese are unlikely to win and there will be huge casualties on both sides.