Electronic Technology
Taiwan Semiconductor Manufacturing Co., Ltd.
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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 2018 | TWD | USD |
| Revenue | 1,031.36B | 34,202.62M |
| Gross Profit | 472,206.17M | 15,659.57M |
| Operating income | 385,724.97M | 12,791.63M |
| Income before tax | 394,452.48M | 13,081.06M |
| Net income | 351,130.88M | 11,644.40M |
| EBITDA | 678,271.27M | 22,493.22M |
| Diluted EPS | 13.54 | 0.44 |
| Dividends Per Share | 8 | 0.26 |
| Total Assets | 2,090.12B | 68,000.39M |
| Total liabilities | 412,631.64M | 13,424.59M |
| Total equity | 1,676.81B | 54,553.72M |
| Operating cash flow | 588,802.63M | 19,526.21M |
| Currency in TWD | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 762,835.02M | 843,512.49M | 947,909.27M | 977,442.68M | 1,031.36B |
| Gross Profit | 362,590.64M | 393,657.61M | 456,509.03M | 472,804.41M | 472,206.17M |
| Operating income | 297,840.87M | 321,903.44M | 377,902.88M | 386,860.22M | 385,724.97M |
| Income before tax | 298,147.87M | 346,296.78M | 382,463.78M | 393,147.08M | 394,452.48M |
| Net income | 263,898.79M | 306,573.83M | 334,247.18M | 343,111.47M | 351,130.88M |
| EBITDA | 498,092.41M | 544,409.01M | 601,731.28M | 647,002.92M | 678,271.27M |
| Diluted EPS | 10.18 | 11.82 | 12.89 | 13.23 | 13.54 |
| Dividends Per Share | 4.49 | 6 | 7 | 8 | 8 |
| Total Assets | 1,495.13B | 1,657.51B | 1,886.45B | 1,991.86B | 2,090.12B |
| Total liabilities | 449,458.09M | 434,883.81M | 496,404.17M | 469,102M | 412,631.64M |
| Total equity | 1,045.54B | 1,221.67B | 1,389.24B | 1,522.05B | 1,676.81B |
| Operating cash flow | 424,778.09M | 534,617.50M | 548,501.57M | 595,753.07M | 588,802.63M |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 25,173.40M | 26,563.91M | 29,391.80M | 32,128.71M | 34,202.62M |
| Gross Profit | 11,965.41M | 12,397.07M | 14,154.96M | 15,541.16M | 15,659.57M |
| Operating income | 9,828.68M | 10,137.39M | 11,717.62M | 12,716.16M | 12,791.63M |
| Income before tax | 9,838.81M | 10,905.58M | 11,859.04M | 12,922.81M | 13,081.06M |
| Net income | 8,708.60M | 9,654.63M | 10,363.99M | 11,278.13M | 11,644.40M |
| EBITDA | 16,436.94M | 17,144.54M | 18,657.86M | 21,267.10M | 22,493.22M |
| Diluted EPS | 0.33 | 0.37 | 0.39 | 0.43 | 0.44 |
| Dividends Per Share | 0.14 | 0.18 | 0.21 | 0.26 | 0.26 |
| Total Assets | 47,311.36M | 50,461.78M | 58,532.85M | 66,934.21M | 68,000.39M |
| Total liabilities | 14,222.45M | 13,239.68M | 15,402.40M | 15,763.63M | 13,424.59M |
| Total equity | 33,084.88M | 37,192.79M | 43,105.53M | 51,146.98M | 54,553.72M |
| Operating cash flow | 14,017.59M | 16,836.18M | 17,007.37M | 19,582.51M | 19,526.21M |
Valuation Measures
| Dec 2018 | |
| PER | 16.65 |
| ROA | 17.20% |
| ROE | 21.95% |
| Operating margin | 37.39% |
| Profit margin | 34.04% |
Key executives
- Vice Chairman & Chief Executive Officer: Che Chia Wei
- Senior Vice President-Operations: J. K. Wang
- Chief Financial Officer: Renzhao Huang
- SVP-Information Technology & Materials Management: J. K. Lin
- Vice President-Research & Technology Development: Michael Wu
Shareholders
- National Development Fund of The Executive Yuan (6.3%)
- Capital Research & Management Co. (World Investors) (3.0%)
- The Vanguard Group, Inc. (2.6%)
- Capital Research & Management Co. (Global Investors) (2.5%)
- BlackRock Fund Advisors (1.9%)
- Norges Bank Investment Management (1.4%)
- Invesco Advisers, Inc. (1.0%)
- Fidelity Management & Research Co. (0.9%)
- Yuanta Securities Investment Trust Co., Ltd. (0.7%)
- APG Asset Management NV (0.7%)
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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- Applied Materials Asia Pacific /Mechanical Equipment Ops/
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- 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
- Semiconductor Manufacturing International Corp.
- ASE Technology Holding Co., Ltd.
- United Microelectronics Corp.
- Vanguard International Semiconductor Co.
- Amkor Technology, Inc.
- Hana Micron Inc.
- Episil Holdings Inc
- DB HiTek Co. LTD
- ITEK, Inc.
- T'way Holdings, Inc.
- YeaRimDang Publishing Co., Ltd.
- Pan Jit International Inc.
- Atomera Incorporated
- Uniquest Corporation
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Last Updated on 17 Jan, 2020