TAIPEI (Taiwan News) — Former Vice President Al Gore's investment firm Generation Investment Management sold its shares in Taiwan Semiconductor Manufacturing Co. (TSMC) following a quarterly investor letter that cited worries about the stability of the semiconductor supply chain and a potential Chinese invasion of Taiwan.

Amid the revelations of a sell-off of TSMC stock by Warren Buffett's Berkshire Hathaway, Gore's firm has followed suit by selling all 326,654 of its TSMC American depository receipts (ADRs) worth US$22.4 million during the fourth quarter of 2022, reported Barron's.

Generation’s co-chief investment officers Miguel Nogales and Mark Ferguson in a quarterly letter to investors sent in January, expressed concerns about the stability of the semiconductor supply chain: "Semiconductors are the canary in the coal mine. America depends heavily on East Asia, especially Taiwan, for supplies. To say that disruption to the global supply chain for semiconductors would have ‘profound consequences’ is an understatement. Markets and countries would be roiled."

They also indicated fears of an impending Chinese invasion of Taiwan: "Depending on who you ask, you should either be worried or very worried about the future of Taiwan. Xi Jinping is clear about his long-term goals" for the country.

Gore's firm also dumped 774,248 ADR shares of Chinese company Alibaba in the fourth quarter to trim its holdings to 3.7 million ADRs. The letter argued that any conflict between China and the West "would have huge consequences for both sides."

The investment firm expressed its wish to avoid falling into the "Normal Angell trap," referring to the commentator who in 1909 predicted that a world war was impossible due to the economic interdependence of the great powers in Europe.