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Taiwan Semiconductor Manufacturing Company Limited (TSM)

For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.

Taiwan Semiconductor Manufacturing Company Limited (TSM) trades at $342.81 with AI Score 60/100 (Hold). Taiwan Semiconductor Manufacturing Company (TSM) is the world's largest dedicated independent semiconductor foundry. Market cap: 1779B, Sector: Technology.

Last analyzed: Mar 15, 2026
Taiwan Semiconductor Manufacturing Company (TSM) is the world's largest dedicated independent semiconductor foundry. The company manufactures integrated circuits and other semiconductor devices for a wide range of applications.
60/100 AI Score Target $410.00 (+19.6%) MCap 1779B Vol 8M

Taiwan Semiconductor Manufacturing Company Limited (TSM) Technology Profile & Competitive Position

CEOC. C. Wei
Employees65152
HeadquartersHsinchu City, TW
IPO Year1997

Taiwan Semiconductor Manufacturing Company (TSM) is the world's leading dedicated semiconductor foundry, manufacturing chips for diverse applications like high-performance computing, smartphones, and automotive. With advanced process technologies and a global customer base, TSM plays a crucial role in the semiconductor supply chain, driving innovation across various tech sectors.

Data Provenance | Financial Data Quantitative Analysis NASDAQ Analysis: Mar 15, 2026

Investment Thesis

TSMC's investment thesis rests on its dominant position in the semiconductor foundry market and its technological leadership. The company's consistent investment in research and development allows it to stay ahead of the curve in process technology, enabling it to manufacture increasingly complex and powerful chips. With a gross margin of 59.9% and a profit margin of 45.1%, TSMC demonstrates strong profitability. The increasing demand for semiconductors across various industries, driven by trends like AI, 5G, and electric vehicles, provides a strong tailwind for TSMC's growth. However, potential risks include geopolitical tensions, particularly concerning Taiwan, and the cyclical nature of the semiconductor industry.

Based on FMP financials and quantitative analysis

Key Highlights

  • Market capitalization of $1754.65B reflects TSMC's dominant position in the semiconductor industry.
  • P/E ratio of 28.16 indicates investor confidence in TSMC's future earnings potential.
  • Profit margin of 45.1% showcases TSMC's operational efficiency and pricing power.
  • Gross margin of 59.9% highlights TSMC's ability to maintain profitability in a competitive market.
  • Return on Equity (ROE) of 35.1% demonstrates TSMC's effective use of shareholder equity to generate profits.

Competitors & Peers

Strengths

  • Leading-edge process technology
  • Large manufacturing capacity
  • Strong customer relationships
  • High profitability

Weaknesses

  • Geographic concentration in Taiwan
  • Dependence on a few key customers
  • Exposure to cyclical demand patterns
  • High capital expenditure requirements

Catalysts

  • Ongoing: Increasing demand for semiconductors in high-growth markets like AI, 5G, and automotive.
  • Ongoing: Continued investment in advanced process technologies, such as 3nm and beyond.
  • Upcoming: Potential expansion into new markets and applications, such as quantum computing.
  • Ongoing: Government incentives and support for the semiconductor industry in Taiwan.

Risks

  • Potential: Geopolitical tensions, particularly concerning Taiwan.
  • Ongoing: Intense competition from other semiconductor manufacturers.
  • Potential: Technological disruptions that could render TSMC's process technologies obsolete.
  • Ongoing: Cyclical demand patterns in the semiconductor industry.
  • Ongoing: High capital expenditure requirements for maintaining technological leadership.

Growth Opportunities

  • Advanced Process Technology: TSMC's continued investment in advanced process technologies, such as 3nm and beyond, positions it to capture a larger share of the high-end semiconductor market. The demand for these advanced chips is driven by applications like high-performance computing and AI, with the market expected to reach hundreds of billions of dollars by 2030. TSMC's technological leadership provides a significant competitive advantage.
  • 5G Infrastructure and Devices: The rollout of 5G networks and the proliferation of 5G-enabled devices are creating significant demand for semiconductors. TSMC is well-positioned to benefit from this trend, as its chips are used in various 5G applications, including base stations, smartphones, and IoT devices. The global 5G market is projected to reach $667.90 billion by 2030, providing a substantial growth opportunity for TSMC.
  • Automotive Electronics: The increasing adoption of electric vehicles (EVs) and advanced driver-assistance systems (ADAS) is driving demand for semiconductors in the automotive industry. TSMC's chips are used in various automotive applications, including powertrain control, infotainment, and safety systems. The automotive semiconductor market is expected to reach $78.7 billion by 2029, offering a significant growth opportunity for TSMC.
  • High-Performance Computing (HPC): The growing demand for HPC in areas like AI, machine learning, and data analytics is driving demand for advanced semiconductors. TSMC's chips are used in various HPC applications, including CPUs, GPUs, and accelerators. The global HPC market is projected to reach $65.17 billion by 2030, providing a substantial growth opportunity for TSMC.
  • Internet of Things (IoT): The proliferation of IoT devices is creating a massive demand for semiconductors. TSMC's chips are used in various IoT applications, including smart homes, wearables, and industrial automation. The global IoT market is expected to reach $1.46 trillion by 2029, offering a significant growth opportunity for TSMC.

Opportunities

  • Growing demand for semiconductors in various applications
  • Expansion into new markets and applications
  • Development of new process technologies
  • Strategic partnerships and acquisitions

Threats

  • Geopolitical tensions
  • Intense competition
  • Technological disruptions
  • Economic downturns

Competitive Advantages

  • Technological Leadership: TSMC's continuous investment in R&D and its ability to consistently deliver leading-edge process technologies provide a significant competitive advantage.
  • Scale and Capacity: TSMC's large scale and manufacturing capacity allow it to serve a wide range of customers and capture a significant market share.
  • Customer Relationships: TSMC's long-standing relationships with its customers and its reputation for reliability create a strong competitive advantage.

About TSM

Taiwan Semiconductor Manufacturing Company (TSMC) was founded in 1987 in Hsinchu, Taiwan, by Morris Chang, with the vision of creating the world's first dedicated semiconductor foundry. This pioneering business model revolutionized the industry by allowing fabless semiconductor companies to focus on design and marketing while outsourcing manufacturing to TSMC. Over the years, TSMC has grown to become the world's largest independent semiconductor foundry, commanding a significant market share. The company manufactures a wide range of integrated circuits and other semiconductor devices using various wafer fabrication processes, including CMOS logic, mixed-signal, radio frequency, and embedded memory. These products are essential components in high-performance computing, smartphones, Internet of Things (IoT) devices, automotive electronics, and digital consumer electronics. TSMC serves a global customer base, providing customer and engineering support services, manufacturing masks, and investing in technology start-up companies. The company also engages in research, design, development, packaging, and testing of color filters, as well as providing investment services.

What They Do

  • Manufactures integrated circuits and other semiconductor devices.
  • Provides wafer fabrication processes for CMOS logic, mixed-signal, and radio frequency applications.
  • Offers embedded memory and bipolar CMOS mixed-signal processes.
  • Provides customer and engineering support services.
  • Manufactures masks for semiconductor production.
  • Invests in technology start-up companies.
  • Researches, designs, develops, packages, and tests color filters.

Business Model

  • Dedicated Foundry Model: TSMC operates as a pure-play foundry, focusing solely on manufacturing semiconductors for other companies.
  • Wafer Fabrication: TSMC generates revenue by fabricating wafers for its customers using various process technologies.
  • Customer Support: TSMC provides customer and engineering support services to its clients, enhancing customer relationships and driving repeat business.

Industry Context

TSMC operates in the highly competitive semiconductor industry, which is characterized by rapid technological advancements and cyclical demand patterns. The industry is currently experiencing strong growth, driven by the increasing demand for semiconductors in various applications, including smartphones, PCs, data centers, and automotive electronics. TSMC's primary competitors include Samsung Electronics and Intel, but TSMC maintains a leading position due to its dedicated foundry model and advanced process technologies. The company's ability to consistently deliver cutting-edge manufacturing capabilities positions it well to capitalize on the long-term growth trends in the semiconductor market.

Key Customers

  • Fabless Semiconductor Companies: TSMC's primary customers are fabless semiconductor companies that design their own chips but outsource manufacturing.
  • Integrated Device Manufacturers (IDMs): TSMC also serves some IDMs that require additional manufacturing capacity.
  • System Companies: Companies that design their own chips for internal use.
AI Confidence: 74% Updated: Mar 15, 2026

Financials

Chart & Info

Taiwan Semiconductor Manufacturing Company Limited (TSM) stock price: $342.81 (+4.50, +1.33%)

Latest News

Analyst Consensus

Consensus Rating

Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TSM.

Price Targets

Consensus target: $410.00

MoonshotScore

60/100

What does this score mean?

The MoonshotScore rates TSM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.

Classification

Sector Technology Industry Semiconductors

Competitors & Peers

Latest News

Latest Taiwan Semiconductor Manufacturing Company Limited Analysis

Related Investment Themes

Leadership: C. C. Wei

CEO

C. C. Wei has served as the Chief Executive Officer of Taiwan Semiconductor Manufacturing Company (TSMC) since 2018. He joined TSMC in 1998 and has held various leadership positions within the company, including Senior Vice President of Business Development, Senior Vice President of Mainstream Technology Business, and Executive Vice President and Co-Chief Executive Officer. Wei holds a Ph.D. in Electrical Engineering from Yale University and a bachelor's degree in Electrical Engineering from National Chiao Tung University in Taiwan. His extensive experience in the semiconductor industry and his deep understanding of TSMC's operations make him a well-suited leader for the company.

Track Record: Under C. C. Wei's leadership, TSMC has continued to strengthen its position as the world's leading semiconductor foundry. He has overseen the company's expansion into new markets and applications, as well as its continued investment in advanced process technologies. Wei has also focused on improving TSMC's operational efficiency and customer service. During his tenure, TSMC has achieved significant milestones in process technology development and has maintained its technological lead over competitors.

Taiwan Semiconductor Manufacturing Company Limited ADR Information

An American Depositary Receipt (ADR) is a certificate that represents shares of a foreign company trading on U.S. stock exchanges. For TSM, each ADR represents five ordinary shares of Taiwan Semiconductor Manufacturing Company Limited traded on the Taiwan Stock Exchange. This allows U.S. investors to easily invest in TSM without dealing with foreign exchanges.

  • Home Market Ticker: Taiwan Stock Exchange (TWSE), Taiwan
Currency Risk: As an ADR, TSM's value is affected by fluctuations in the exchange rate between the U.S. dollar and the New Taiwan dollar. If the New Taiwan dollar weakens against the U.S. dollar, the value of TSM's ADRs may decrease, even if the underlying stock price in Taiwan remains the same. Investors should be aware of this currency risk when investing in TSM's ADRs.
Tax Implications: Dividends paid on TSM's ADRs are subject to a foreign dividend withholding tax in Taiwan. The standard withholding tax rate is typically around 21%. However, the U.S. has a tax treaty with Taiwan that may reduce the withholding tax rate for eligible U.S. investors. Investors should consult with a tax advisor to determine the specific tax implications of investing in TSM's ADRs.
Trading Hours: The Taiwan Stock Exchange (TWSE) operates on a different time zone than the New York Stock Exchange (NYSE), where TSM's ADRs are traded. The TWSE is open from 9:00 AM to 1:30 PM Taiwan time, which is 13 hours ahead of Eastern Standard Time (EST). This means that there is a period of time when the TWSE is closed while the NYSE is open, and vice versa. Investors should be aware of these trading hour differences when trading TSM's ADRs.

Common Questions About TSM

What does Taiwan Semiconductor Manufacturing Company Limited do?

Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's largest dedicated independent semiconductor foundry. It manufactures integrated circuits and other semiconductor devices for fabless semiconductor companies and integrated device manufacturers (IDMs). TSMC's services encompass a wide range of wafer fabrication processes, including CMOS logic, mixed-signal, radio frequency, and embedded memory. Its products are essential components in various applications, including high-performance computing, smartphones, Internet of Things (IoT) devices, automotive electronics, and digital consumer electronics. TSMC's business model focuses on providing manufacturing services, allowing its customers to concentrate on design and marketing.

What do analysts say about TSM stock?

Analyst consensus on TSM stock generally reflects a positive outlook, driven by the company's dominant market position and technological leadership. Key valuation metrics, such as the P/E ratio of 28.16, suggest that investors are willing to pay a premium for TSMC's earnings potential. Growth considerations include the increasing demand for semiconductors in various industries and TSMC's ability to maintain its technological edge. However, analysts also acknowledge potential risks, such as geopolitical tensions and cyclical demand patterns. The overall sentiment is cautiously optimistic, with expectations of continued growth and profitability for TSMC.

What are the main risks for TSM?

The main risks for TSMC include geopolitical tensions, particularly concerning Taiwan, which could disrupt its operations and supply chain. Intense competition from other semiconductor manufacturers, such as Samsung and Intel, poses a threat to TSMC's market share and profitability. Technological disruptions, such as the emergence of new materials or manufacturing processes, could render TSMC's current technologies obsolete. Cyclical demand patterns in the semiconductor industry could lead to periods of reduced revenue and profitability. Additionally, the high capital expenditure requirements for maintaining technological leadership could strain TSMC's financial resources.

What are the key factors to evaluate for TSM?

Taiwan Semiconductor Manufacturing Company Limited (TSM) currently holds an AI score of 60/100, indicating moderate score. The stock trades at a P/E of 28.2x, near the S&P 500 average (~20-25x). Analysts target $410.00 (+20% from $342.81). Key strength: Leading-edge process technology. Primary risk to monitor: Potential: Geopolitical tensions, particularly concerning Taiwan.. This is not financial advice.

How frequently does TSM data refresh on this page?

TSM prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.

What has driven TSM's recent stock price performance?

Recent price movement in Taiwan Semiconductor Manufacturing Company Limited (TSM) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $410.00 implies 20% upside from here. Notable catalyst: Leading-edge process technology. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.

Should investors consider TSM overvalued or undervalued right now?

Determining whether Taiwan Semiconductor Manufacturing Company Limited (TSM) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 28.2. Analysts target $410.00 (+20% from current price), suggesting analysts see upside potential. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.

What research should beginners do before buying TSM?

Before investing in Taiwan Semiconductor Manufacturing Company Limited (TSM), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources

Analysis updated AI Score refreshed daily
Data Sources & Methodology
Market data powered by Financial Modeling Prep & Yahoo Finance. AI analysis by Stock Expert AI proprietary algorithms. Technical indicators via industry-standard calculations. Last updated: .

Data provided for informational purposes only.

Analysis Notes
  • The information provided in this dossier is based on publicly available data and management's estimates. Actual results may vary.
  • This is not investment advice. Please consult with a financial professional before making any investment decisions.
Data Sources

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