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Electronic Technology

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 2020 TWDUSD
Revenue1,339.23B45,483.45M
Gross Profit683,554.56M23,215.00M
Operating income566,037.89M19,223.88M
Income before tax581,184.36M19,738.28M
Net income517,885.38M17,588.51M
EBITDA897,762.58M30,489.97M
Diluted EPS19.970.67
Dividends Per Share100.33
Total Assets2,760.71B98,252.94M
Total liabilities910,089.40M32,389.82M
Total equity1,849.65B65,828.78M
Operating cash flow834,147.35M28,329.46M
Currency in TWDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 947,909.27M 977,442.68M 1,031.36B 1,069.98B 1,339.23B
Gross Profit 456,509.03M 472,804.41M 472,206.17M 465,418.52M 683,554.56M
Operating income 377,902.88M 386,860.22M 385,724.97M 373,173.14M 566,037.89M
Income before tax 382,463.78M 393,147.08M 394,452.48M 387,001.11M 581,184.36M
Net income 334,247.18M 343,111.47M 351,130.88M 345,263.66M 517,885.38M
EBITDA 601,731.28M 647,002.92M 678,271.27M 660,057.38M 897,762.58M
Diluted EPS 12.89 13.23 13.54 13.31 19.97
Dividends Per Share 7 8 8 9.50 10
Total Assets 1,886.45B 1,991.86B 2,090.12B 2,264.80B 2,760.71B
Total liabilities 496,404.17M 469,102M 412,631.64M 642,709.60M 910,089.40M
Total equity 1,389.24B 1,522.05B 1,676.81B 1,621.41B 1,849.65B
Operating cash flow 548,501.57M 595,753.07M 588,802.63M 630,455.78M 834,147.35M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 29,391.80M 32,128.71M 34,202.62M 34,613.23M 45,483.45M
Gross Profit 14,154.96M 15,541.16M 15,659.57M 15,055.89M 23,215.00M
Operating income 11,717.62M 12,716.16M 12,791.63M 12,071.83M 19,223.88M
Income before tax 11,859.04M 12,922.81M 13,081.06M 12,519.15M 19,738.28M
Net income 10,363.99M 11,278.13M 11,644.40M 11,168.98M 17,588.51M
EBITDA 18,657.86M 21,267.10M 22,493.22M 21,352.29M 30,489.97M
Diluted EPS 0.39 0.43 0.44 0.43 0.67
Dividends Per Share 0.21 0.26 0.26 0.30 0.33
Total Assets 58,532.85M 66,934.21M 68,000.39M 75,551.42M 98,252.94M
Total liabilities 15,402.40M 15,763.63M 13,424.59M 21,440.09M 32,389.82M
Total equity 43,105.53M 51,146.98M 54,553.72M 54,088.47M 65,828.78M
Operating cash flow 17,007.37M 19,582.51M 19,526.21M 20,394.71M 28,329.46M

Valuation Measures

Dec 2020
PER26.53
ROA20.61%
ROE29.84%
Operating margin42.26%
Profit margin38.67%

Key executives

  • Vice Chairman & Chief Executive Officer: Che Chia Wei
  • Senior Vice President-Operations: J. K. Wang
  • Chief Financial Officer: Jen Chao Huang
  • Senior Vice President-Europe & Asia Sales: Li Mei Ho
  • Chief Financial Officer: Renzhao Huang

Shareholders

  • National Development Fund of The Executive Yuan (6.3%)
  • Capital Research & Management Co. (World Investors) (2.4%)
  • The Vanguard Group, Inc. (2.3%)
  • Capital Research & Management Co. (Global Investors) (1.8%)
  • BlackRock Fund Advisors (1.8%)
  • Norges Bank Investment Management (1.5%)
  • Invesco Advisers, Inc. (0.9%)
  • Fidelity Management & Research Co. LLC (0.9%)
  • APG Asset Management NV (0.6%)
  • Baillie Gifford & Co. (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

Related Companies

  • TSMC Global Ltd.
  • Taiwan Omnivision Investment Holding Co. Ltd.
  • VisEra Holding Cayman Ltd.
  • Taiwan Semiconductor Manufacturing Co. Ltd. /LED Ops/
  • TSMC Guang Neng Investment Ltd.
  • Tsmc Solar Ltd.
  • Tai Chi Solar Energy Co. Ltd.
  • TSMC Global Ltd.
  • Tsmc Design Technology Canada, Inc.
  • TSMC (China) Co., Ltd.
  • Taiwan Semiconductor Manufacturing North America Co. Ltd.
  • Applied Materials Asia Pacific /Mechanical Equipment Ops/
  • NuFlare Technology, Inc. /Mechanical Equipment Ops./
  • ASML Hong Kong Ltd. /Mechanical Equipment Ops/
  • Global Chip Corp.
  • TSMC International Investment Co. Ltd.
  • TSMC Japan Ltd.
  • Taiwan Semiconductor Manufacturing Co. Europe BV
  • TSMC North America
  • TSMC Partners Ltd.
  • Kung Cherng Investment Co. Ltd.
  • Chi-Hsin Investment Co. Ltd.
  • Po Cherng Investment Co., Ltd.
  • Hsin Ruey Investment Co. Ltd.
  • Chi Cheung Investment Co. Ltd. /TW/

Competitors

  • Tower Semiconductor Ltd
  • ASE Technology Holding Co., Ltd.
  • Vanguard International Semiconductor Co.
  • United Microelectronics Corp.
  • Amkor Technology, Inc.
  • Sai MicroElectronics Inc. Class A
  • Hana Micron Inc.
  • Episil Holdings Inc
  • T'way Holdings, Inc.
  • YeaRimDang Publishing Co., Ltd.
  • Intel Corporation
  • Advanced Wireless Semiconductor Co.
  • Ledtech Electronics Corp.
  • Shenzhen Sunmoon Microelectronics Co. Ltd. Class A
Last Updated on 16 Apr, 2021

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