Taiwan Semiconductor Manufacturing Co.'s final stake in Arm Holdings has been sold, the company disclosed in a regulatory filing. TSMC's subsidiary, TSMC Partners, disposed of 1.11 million Arm shares between April 28 and April 29 at a price of $207.65 per share, yielding approximately $231 million in proceeds.
The filing noted that the disposal generated an impact on retained earnings of $174 million. Following the trade, TSMC no longer maintains any direct holding in Arm.
According to the same disclosure, the company characterized the transaction as part of a disposal of an equity investment. The move completes a reduction in TSMC's position in the chip designer after investments and prior sales.
TSMC initially purchased shares in Arm during the chip designer's 2023 initial public offering, investing about $100 million at $51 per share alongside other strategic backers. The company had been trimming its exposure over time, including a 2024 sale of 850,000 Arm shares at $119.47 each for roughly $102 million, as reported in filings at that time.
Market reaction to Arm's shares was visible in recent trading: Arm's share price fell 7.98% on Tuesday. The filing and the trading moves mark the conclusion of TSMC's direct equity relationship with Arm via TSMC Partners.
Context and implications
The filing frames the transaction strictly as an equity disposal; it records the financial effect on retained earnings without attributing further strategic rationale or forecasting follow-on moves. The sequence of purchases and partial disposals - from the initial IPO investment to the 2024 sale and the latest transaction - is reflected in the book gains and the stated retained earnings impact.
Key facts
- TSMC Partners sold 1.11 million Arm shares on April 28-29 at $207.65 per share, for about $231 million total.
- The disposal resulted in a $174 million impact on TSMC's retained earnings.
- TSMC originally invested about $100 million in Arm at $51 per share in the 2023 IPO and previously sold 850,000 shares in 2024 at $119.47 each for about $102 million.
The disclosure does not offer commentary on future capital allocation, nor does it describe any additional financial arrangements between TSMC and Arm following the completion of this sale.