Taiwan Semiconductor (NYSE: TSM) director Splinter lifts his direct stake 11.1%

What happened

Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) director Michael R. Splinter bought 840 American Depositary Shares on Nov. 5. Splinter paid $357.00 per share, a total of about $299,880.

The purchase took Splinter's direct holding to 8,405 shares. By OptimistFi's calculation, the 840 shares were 11.1% of the 7,565 held directly before the trade, so Splinter added to an existing position rather than starting one. Splinter holds the shares directly, not through a trust or retirement account.

Each American Depositary Share represents five common shares, according to the filing. Splinter also reports indirect holdings: 795 shares in his spouse's IRA and 245 shares in each of five irrevocable trusts for which he serves as trustee and exercises investing authority. The form was signed Nov. 9.

Key numbers

Metric	Latest	Change	Source
Shares bought	840 shares		SEC Form 4
Price per share	$357.00		SEC Form 4
Total purchase value	$299,880		SEC Form 4
Direct holding after the trade	8,405 shares	from 7,565 shares, +11.1%	Calculated from SEC Form 4

Read more: Taiwan Semiconductor Manufacturing (TSM) company research

Why it matters

OptimistFi has argued that TSM is worth owning if its 2024 semiconductor rebound keeps converting into high margins, earnings growth and cash instead of proving a one-year cycle spike. The case rests on durability, which means the rebound has to show up as profit and cash quarter after quarter. A director buying shares leans toward that view, though only modestly.

The filing reports the transaction with code P, the purchase code, and lists Splinter as a director of the company. Because the 840 shares went into the direct holding and not into the trusts or the spouse's IRA, the buy changes the position Splinter holds in his own name. Those other holdings are listed separately, so they do not account for the increase.

The purchase is one director's decision, and it cannot show that the rebound will last. Treat it as a small positive input beside the quarterly numbers, not a substitute for them.

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What's next

The next quarterly report from Taiwan Semiconductor Manufacturing is the test. Margins, earnings and cash that hold at high levels would support the case, while a drop would suggest the rebound was a one-year spike.

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• TSM stock: research and coverage of Taiwan Semiconductor Manufacturing
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