Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
- Exceptional ROE of 40.0% — highly efficient use of shareholder capital
- Robust net profit margin of 49.9% — strong pricing power
- Superior operating margin of 60.3% — strong operational leverage
- Low leverage (D/E 0.17) — conservative balance sheet
- Strong liquidity (Current Ratio 2.46) — well-covered short-term obligations
- No major red flags in reported financials — continue monitoring quarterly results
- Strong revenue growth of 36.0% YoY — expanding market share
- Rapid earnings growth of 77.4% — operating leverage kicking in
- Forward P/E of 19.8x is below trailing — market expects earnings growth
- PEG of 0.82 — growth is under-priced
- Positioned in Technology — growth-oriented sector, aligned with respective macro cycles
- Rich P/B of 88.7x — significant premium to net assets
- Extended 15% above 200-day MA — overbought technically








