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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, and 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 2021 TWDUSD
Revenue1,587.41B56,831.67M
Gross Profit788,820.56M28,240.88M
Operating income650,166.76M23,276.88M
Income before tax657,523.23M23,540.25M
Net income596,540.01M21,356.96M
EBITDA1,072.56B38,399.20M
Diluted EPS23.000.82
Dividends Per Share110.39
Total Assets3,725.50B134,655.13M
Total liabilities1,554.77B56,195.84M
Total equity2,168.28B78,370.86M
Operating cash flow1,116.81B39,983.60M
Currency in TWDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 977,442.68M 1,031.36B 1,069.98B 1,339.23B 1,587.41B
Gross Profit 472,804.41M 472,206.17M 465,418.52M 683,554.56M 788,820.56M
Operating income 386,860.22M 385,724.97M 373,173.14M 566,037.89M 650,166.76M
Income before tax 393,147.08M 394,452.48M 387,001.11M 581,184.36M 657,523.23M
Net income 343,111.47M 351,130.88M 345,263.66M 517,885.38M 596,540.01M
EBITDA 647,002.92M 678,271.27M 660,057.38M 897,762.58M 1,072.56B
Diluted EPS 13.23 13.54 13.31 19.97 23.00
Dividends Per Share 8 8 9.50 10 11
Total Assets 1,991.86B 2,090.12B 2,264.80B 2,760.71B 3,725.50B
Total liabilities 469,102M 412,631.64M 642,709.60M 910,089.40M 1,554.77B
Total equity 1,522.05B 1,676.81B 1,621.41B 1,849.65B 2,168.28B
Operating cash flow 595,753.07M 588,802.63M 630,455.78M 834,147.35M 1,116.81B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 32,128.71M 34,202.62M 34,613.23M 45,483.45M 56,831.67M
Gross Profit 15,541.16M 15,659.57M 15,055.89M 23,215.00M 28,240.88M
Operating income 12,716.16M 12,791.63M 12,071.83M 19,223.88M 23,276.88M
Income before tax 12,922.81M 13,081.06M 12,519.15M 19,738.28M 23,540.25M
Net income 11,278.13M 11,644.40M 11,168.98M 17,588.51M 21,356.96M
EBITDA 21,267.10M 22,493.22M 21,352.29M 30,489.97M 38,399.20M
Diluted EPS 0.43 0.44 0.43 0.67 0.82
Dividends Per Share 0.26 0.26 0.30 0.33 0.39
Total Assets 66,934.21M 68,000.39M 75,551.42M 98,252.94M 134,655.13M
Total liabilities 15,763.63M 13,424.59M 21,440.09M 32,389.82M 56,195.84M
Total equity 51,146.98M 54,553.72M 54,088.47M 65,828.78M 78,370.86M
Operating cash flow 19,582.51M 19,526.21M 20,394.71M 28,329.46M 39,983.60M

Valuation Measures

Dec 2021
PER26.73
ROA18.39%
ROE29.69%
Operating margin40.95%
Profit margin37.57%

Key executives

  • Vice Chairman & Chief Executive Officer: Che Chia Wei
  • Vice Chairman & President: Fan Cheng Tseng
  • Senior Vice President-Operations: Y. P. Chin
  • Chief Financial Officer & Vice President: Wendell Huang
  • SVP-Information Technology & Materials Management: J. K. Lin

Shareholders

  • National Development Fund of The Executive Yuan (6.3%)
  • The Vanguard Group, Inc. (2.5%)
  • Capital Research & Management Co. (World Investors) (2.0%)
  • BlackRock Fund Advisors (1.8%)
  • Norges Bank Investment Management (1.4%)
  • Fidelity Management & Research Co. LLC (1.0%)
  • Capital Research & Management Co. (Global Investors) (1.0%)
  • Yuanta Securities Investment Trust Co., Ltd. (0.9%)
  • Baillie Gifford & Co. (0.9%)
  • Capital International Ltd. (0.6%)

Contact Details

  • Website:http://www.tsmc.com
  • Address: Hsinchu Science Park, No. 8 Li-Hsin 6th Road, Hsinchu, 300 96, Taiwan
  • Phone: +886.3.563.6688

Related Companies

  • TSMC Arizona Corp.
  • TSMC Korea Ltd.
  • TSMC Design Technology Japan, Inc.
  • TMSC Global Ltd.
  • TSMC Nanjing Co., 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.
  • VisEra Technologies Co., Ltd.
  • TSMC Europe BV
  • 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 , Inc.
  • TSMC Partners Ltd.
  • Kung Cherng Investment Co. Ltd.
  • Chi-Hsin Investment Co. Ltd.
  • Po Cherng Investment Co., Ltd.
  • Hsin Ruey Investment Co. Ltd.

Competitors

  • United Microelectronics Corp.
  • Tower Semiconductor Ltd
  • ASE Technology Holding Co., Ltd.
  • Samsung Electronics Co., Ltd.
  • Vanguard International Semiconductor Corp
  • SkyWater Technology Inc
  • Amkor Technology, Inc.
  • GlobalFoundries Inc.
  • Sai MicroElectronics Inc. Class A
  • Hana Micron Inc.
  • Episil Technologies Inc.
  • China Wire & Cable Co., Ltd.
  • Leaguer (Shenzhen) Microelectronics Corp. Class A
  • Mospec Semiconductor Corp.
  • Sanan Optoelectronics Co., Ltd. Class A
  • Spirox Corporation
Last Updated on 10 Aug, 2022

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