Taiwan Semiconductor Manufacturing Co. (TSMC) CEO C.C. Wei (???) spent more than NT$179 million (US$5.87 million) buying TSMC shares over the past three months, when the stock was relatively volatile, with market analysts saying the purchases reflect Wei's faith in the chipmaker's long term business outlook.
According to data released by the Taiwan Stock Exchange (TWSE), where TSMC shares are traded, Wei bought 67,000 shares in the world's largest contract chipmaker on the open market in December, boosting his holdings to about 6.35 million shares.
Based on the fact TSMC shares traded at between NT$442.50 and NT$508 during the month, the purchases cost Wei at least NT$29.64 million.
Before December, the TWSC data showed, Wei bought 200,000 TSMC shares in both October and November on the open market despite volatility on the local main board. The total purchases in the three months is estimated to have surpassed NT$179 million.
In addition to Wei, other TSMC executives including Cliff Hou (???), senior vice president for Europe & Asia Sales and Research & Development/Corporate Research; L.C. Lu (???), fellow and vice president for Research & Development/Design & Technology Platform; and Jonathan Lee (???), vice president for Corporate Planning Organization, also bought the company's shares in December, according to the TWSE.
The local equity market faced headwinds from October to December amid rising fears over an aggressive United States Federal Reserve, analysts said.
In addition to concerns over the rate hike cycle by the Fed, the local semiconductor industry also faced inventory adjustments at a time of weakening global demand resulting from inflation and rate hikes, they said.
In October, TSMC shares, the most heavily weighted stock on the local market, fell 11.76 percent before staging a technical rebound of 25.64 percent in November. However, the stock weakened again in December, falling 8.47 percent.
At a tech forum held by the Mount Jade Global Science and Technology Association in Taipei in December, Wei said his purchases of TSMC shares demonstrated his confidence in the company's technology, production and clients' trust.
A good company's value will be reflected in its share price, he said.
As with U.S investment guru Warren Buffett, whose Berkshire Hathaway Inc. bought a large chunk of TSMC's American depositary receipts (ADRs) last year, Wei said he hoped his purchases would have a positive influence to the company's share price.
On Nov. 14 in the U.S., news surfaced that Berkshire Hathaway reported to the U.S. Securities and Exchange Commission that it owned about 60.1 million TSMC ADRs valued at more than US$4.1 billion as of the end of the third quarter.
Source: Focus Taiwan News Channel