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 2022	TWD	USD
Revenue	2,263.89B	75,936.46M
Gross Profit	1,316.82B	44,169.55M
Operating income	1,121.63B	37,622.49M
Income before tax	1,136.39B	38,117.38M
Net income	1,016.53B	34,096.91M
EBITDA	1,558.89B	52,289.07M
Diluted EPS	39.20	1.31
Dividends Per Share	10.99	0.36
Total Assets	4,964.77B	161,532.39M
Total liabilities	2,004.29B	65,210.91M
Total equity	2,945.65B	95,838.79M
Operating cash flow	1,620.83B	54,366.78M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	1,031.36B	1,069.98B	1,339.23B	1,587.41B	2,263.89B
Gross Profit	472,206.17M	465,418.52M	683,554.56M	788,820.56M	1,316.82B
Operating income	385,724.97M	373,173.14M	566,037.89M	650,166.76M	1,121.63B
Income before tax	394,452.48M	387,001.11M	581,184.36M	657,523.23M	1,136.39B
Net income	351,130.88M	345,263.66M	517,885.38M	596,540.01M	1,016.53B
EBITDA	678,271.27M	660,057.38M	897,762.58M	1,072.56B	1,558.89B
Diluted EPS	13.54	13.31	19.97	23.00	39.20
Dividends Per Share	8	9.50	10	11	10.99
Total Assets	2,090.12B	2,264.80B	2,760.71B	3,725.50B	4,964.77B
Total liabilities	412,631.64M	642,709.60M	910,089.40M	1,554.77B	2,004.29B
Total equity	1,676.81B	1,621.41B	1,849.65B	2,168.28B	2,945.65B
Operating cash flow	588,802.63M	630,455.78M	834,147.35M	1,116.81B	1,620.83B

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	34,202.62M	34,613.23M	45,483.45M	56,831.67M	75,936.46M
Gross Profit	15,659.57M	15,055.89M	23,215.00M	28,240.88M	44,169.55M
Operating income	12,791.63M	12,071.83M	19,223.88M	23,276.88M	37,622.49M
Income before tax	13,081.06M	12,519.15M	19,738.28M	23,540.25M	38,117.38M
Net income	11,644.40M	11,168.98M	17,588.51M	21,356.96M	34,096.91M
EBITDA	22,493.22M	21,352.29M	30,489.97M	38,399.20M	52,289.07M
Diluted EPS	0.44	0.43	0.67	0.82	1.31
Dividends Per Share	0.26	0.30	0.33	0.39	0.36
Total Assets	68,000.39M	75,551.42M	98,252.94M	134,655.13M	161,532.39M
Total liabilities	13,424.59M	21,440.09M	32,389.82M	56,195.84M	65,210.91M
Total equity	54,553.72M	54,088.47M	65,828.78M	78,370.86M	95,838.79M
Operating cash flow	19,526.21M	20,394.71M	28,329.46M	39,983.60M	54,366.78M

Valuation Measures

Dec 2022
PER	11.44
ROA	23.39%
ROE	39.75%
Operating margin	49.54%
Profit margin	44.90%

Key executives

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

Shareholders

National Development Fund of The Executive Yuan (6.3%)
The Vanguard Group, Inc. (2.6%)
GIC Pte Ltd. (Investment Management) (2.5%)
BlackRock Fund Advisors (1.9%)
Capital Research & Management Co. (World Investors) (1.7%)
Norges Bank Investment Management (1.6%)
Labor Pension Fund Supervisory Committee (1.0%)
Fidelity Management & Research Co. LLC (1.0%)
Yuanta Securities Investment Trust Co., Ltd. (1.0%)
Fubon Life Insurance Co., Ltd. (0.9%)

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

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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.
Intel Corporation
BCnC Co., Ltd.
China Wire & Cable Co., Ltd.
LAT CO., LTD.
Leaguer (Shenzhen) Microelectronics Corp. Class A
Mospec Semiconductor Corp.
Taiwan Speciality Chemicals Corporation

Last Updated on 21 Mar, 2023