Taiwan Semiconductor Manufacturing Co., Ltd.

In the news

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Sony rejects investor demand for chips business spinoff Sep 17, 2019
China and Taiwan set to lead chip investment surge in 2020 Sep 16, 2019

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 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

TWD | USD

	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) (3.2%)
The Vanguard Group, Inc. (2.6%)
Capital Research & Management Co. (Global Investors) (2.3%)
BlackRock Fund Advisors (1.9%)
Norges Bank Investment Management (1.4%)
Invesco Advisers, Inc. (1.0%)
Yuanta Securities Investment Trust Co., Ltd. (0.7%)
APG Asset Management NV (0.7%)
Fidelity Management & Research 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

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Competitors

Semiconductor Manufacturing International Corp.
ASE Technology Holding Co., Ltd.
ASE Technology Holding Co., Ltd.
United Microelectronics Corp.
Vanguard International Semiconductor Co.
Amkor Technology, Inc.
Episil Holdings Inc
DB HiTek Co. LTD
ITEK, Inc.
T'way Holdings, Inc.
Pan Jit International Inc.
Atomera Incorporated
Ledtech Electronics Corp.

Last Updated on 14 Oct, 2019