Taiwan Semiconductor Manufacturing Co., Ltd.

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See more articles on Taiwan Semiconductor Manufacturing Co., Ltd.

Company Background

Taiwan Semiconductor Mfg., better known as TSMC, is the world's largest semiconductor foundry.

It receives orders to make large-scale integrated circuits for smartphones, in addition to a variety of semiconductors for PCs and TVs.

According to U.S. research company Gartner, TSMC accounted for 53.7% of the market for semiconductor production outsourcing in 2014.

TSMC was established in 1987 at the initiative of the Taiwanese government to promote the country's semiconductor industry.

Morris Chang, the de facto founder and chairman, had served as group vice president at U.S. chipmaker Texas Instruments before taking the chairmanship at TSMC, by request of the government.

TSMC was the first in the world to specialize in semiconductor production outsourcing; it gets most of its orders from U.S. brands. In 2014, it contracted with Apple to make central processing units for the iPhone, significantly raising earnings.

The company, which also has plants in China and Singapore, faces a challenging future. In January of 2015, it sold its unprofitable light-emitting diode business. It must foster new businesses.

Chang is a charismatic corporate manager, but the market is closely watching for when the 80-something businessman retires from the managerial front line.

Business Summary

Taiwan Semiconductor Manufacturing Co., Ltd. engages in the manufacture and sale of integrated circuits and wafer semiconductor devices. Its chips are used in personal computers and peripheral products; information applications; wired and wireless communications systems products; automotive and industrial equipment including consumer electronics such as digital video compact disc player, digital television, game consoles, and digital cameras. The company was founded by Chung Mou Chang on February 21, 1987 and is headquartered in Hsinchu, Taiwan.

Financial Highlights

Dec 2019	TWD	USD
Revenue	1,069.98B	34,613.23M
Gross Profit	465,418.52M	15,055.89M
Operating income	373,173.14M	12,071.83M
Income before tax	387,001.11M	12,519.15M
Net income	345,263.66M	11,168.98M
EBITDA	660,057.38M	21,352.29M
Diluted EPS	13.31	0.43
Dividends Per Share	9.50	0.30
Total Assets	2,264.80B	75,551.42M
Total liabilities	642,709.60M	21,440.09M
Total equity	1,621.41B	54,088.47M
Operating cash flow	630,455.78M	20,394.71M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	843,512.49M	947,909.27M	977,442.68M	1,031.36B	1,069.98B
Gross Profit	393,657.61M	456,509.03M	472,804.41M	472,206.17M	465,418.52M
Operating income	321,903.44M	377,902.88M	386,860.22M	385,724.97M	373,173.14M
Income before tax	346,296.78M	382,463.78M	393,147.08M	394,452.48M	387,001.11M
Net income	306,573.83M	334,247.18M	343,111.47M	351,130.88M	345,263.66M
EBITDA	544,409.01M	601,731.28M	647,002.92M	678,271.27M	660,057.38M
Diluted EPS	11.82	12.89	13.23	13.54	13.31
Dividends Per Share	6	7	8	8	9.50
Total Assets	1,657.51B	1,886.45B	1,991.86B	2,090.12B	2,264.80B
Total liabilities	434,883.81M	496,404.17M	469,102M	412,631.64M	642,709.60M
Total equity	1,221.67B	1,389.24B	1,522.05B	1,676.81B	1,621.41B
Operating cash flow	534,617.50M	548,501.57M	595,753.07M	588,802.63M	630,455.78M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	26,563.91M	29,391.80M	32,128.71M	34,202.62M	34,613.23M
Gross Profit	12,397.07M	14,154.96M	15,541.16M	15,659.57M	15,055.89M
Operating income	10,137.39M	11,717.62M	12,716.16M	12,791.63M	12,071.83M
Income before tax	10,905.58M	11,859.04M	12,922.81M	13,081.06M	12,519.15M
Net income	9,654.63M	10,363.99M	11,278.13M	11,644.40M	11,168.98M
EBITDA	17,144.54M	18,657.86M	21,267.10M	22,493.22M	21,352.29M
Diluted EPS	0.37	0.39	0.43	0.44	0.43
Dividends Per Share	0.18	0.21	0.26	0.26	0.30
Total Assets	50,461.78M	58,532.85M	66,934.21M	68,000.39M	75,551.42M
Total liabilities	13,239.68M	15,402.40M	15,763.63M	13,424.59M	21,440.09M
Total equity	37,192.79M	43,105.53M	51,146.98M	54,553.72M	54,088.47M
Operating cash flow	16,836.18M	17,007.37M	19,582.51M	19,526.21M	20,394.71M

Valuation Measures

Dec 2019
PER	24.85
ROA	15.85%
ROE	20.93%
Operating margin	34.87%
Profit margin	32.26%

Key executives

Vice Chairman & Chief Executive Officer: Che Chia Wei
Senior Vice President-Operations: J. K. Wang
Chief Financial Officer: Jen Chao Huang
Chief Financial Officer: Renzhao Huang
SVP-Information Technology & Materials Management: J. K. Lin

Shareholders

National Development Fund of The Executive Yuan (6.3%)
Capital Research & Management Co. (World Investors) (2.8%)
The Vanguard Group, Inc. (2.7%)
Capital Research & Management Co. (Global Investors) (2.1%)
BlackRock Fund Advisors (1.7%)
Norges Bank Investment Management (1.5%)
Invesco Advisers, Inc. (1.1%)
Fidelity Management & Research Co. LLC (0.8%)
APG Asset Management NV (0.7%)
Canada Pension Plan Investment Board (0.6%)

Contact Details

Website:http://www.tsmc.com
Address: Hsinchu Science Park, No. 8 Li-Hsin 6th Road, Hsinchu, 300 78, Taiwan
Phone: +886.3.563.6688

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Competitors

Tower Semiconductor Ltd
ASE Technology Holding Co., Ltd.
Vanguard International Semiconductor Co.
United Microelectronics Corp.
Amkor Technology, Inc.
Hana Micron Inc.
Episil Holdings Inc
DB HiTek Co. LTD
ITEK, Inc.
T'way Holdings, Inc.
YeaRimDang Publishing Co., Ltd.
Advanced Wireless Semiconductor Co.
Uniquest Corporation

Last Updated on 10 Jul, 2020