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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 2019 TWDUSD
Revenue1,069.98B34,613.23M
Gross Profit465,418.52M15,055.89M
Operating income373,173.14M12,071.83M
Income before tax387,001.11M12,519.15M
Net income345,263.66M11,168.98M
EBITDA660,057.38M21,352.29M
Diluted EPS13.310.43
Dividends Per Share9.500.30
Total Assets2,264.80B75,551.42M
Total liabilities642,709.60M21,440.09M
Total equity1,621.41B54,088.47M
Operating cash flow630,455.78M20,394.71M
Currency in TWDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 843,512.49M 947,909.27M 977,442.68M 1,031.36B 1,069.98B
Gross Profit 393,657.61M 456,509.03M 472,804.41M 472,206.17M 465,418.52M
Operating income 321,903.44M 377,902.88M 386,860.22M 385,724.97M 373,173.14M
Income before tax 346,296.78M 382,463.78M 393,147.08M 394,452.48M 387,001.11M
Net income 306,573.83M 334,247.18M 343,111.47M 351,130.88M 345,263.66M
EBITDA 544,409.01M 601,731.28M 647,002.92M 678,271.27M 660,057.38M
Diluted EPS 11.82 12.89 13.23 13.54 13.31
Dividends Per Share 6 7 8 8 9.50
Total Assets 1,657.51B 1,886.45B 1,991.86B 2,090.12B 2,264.80B
Total liabilities 434,883.81M 496,404.17M 469,102M 412,631.64M 642,709.60M
Total equity 1,221.67B 1,389.24B 1,522.05B 1,676.81B 1,621.41B
Operating cash flow 534,617.50M 548,501.57M 595,753.07M 588,802.63M 630,455.78M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 26,563.91M 29,391.80M 32,128.71M 34,202.62M 34,613.23M
Gross Profit 12,397.07M 14,154.96M 15,541.16M 15,659.57M 15,055.89M
Operating income 10,137.39M 11,717.62M 12,716.16M 12,791.63M 12,071.83M
Income before tax 10,905.58M 11,859.04M 12,922.81M 13,081.06M 12,519.15M
Net income 9,654.63M 10,363.99M 11,278.13M 11,644.40M 11,168.98M
EBITDA 17,144.54M 18,657.86M 21,267.10M 22,493.22M 21,352.29M
Diluted EPS 0.37 0.39 0.43 0.44 0.43
Dividends Per Share 0.18 0.21 0.26 0.26 0.30
Total Assets 50,461.78M 58,532.85M 66,934.21M 68,000.39M 75,551.42M
Total liabilities 13,239.68M 15,402.40M 15,763.63M 13,424.59M 21,440.09M
Total equity 37,192.79M 43,105.53M 51,146.98M 54,553.72M 54,088.47M
Operating cash flow 16,836.18M 17,007.37M 19,582.51M 19,526.21M 20,394.71M

Valuation Measures

Dec 2019
PER24.85
ROA15.85%
ROE20.93%
Operating margin34.87%
Profit margin32.26%

Key executives

  • Vice Chairman & Chief Executive Officer: Che Chia Wei
  • Senior Vice President-Operations: J. K. Wang
  • Chief Financial Officer: Jen Chao Huang
  • Chief Financial Officer: Renzhao Huang
  • SVP-Information Technology & Materials Management: J. K. Lin

Shareholders

  • National Development Fund of The Executive Yuan (6.3%)
  • Capital Research & Management Co. (World Investors) (2.8%)
  • The Vanguard Group, Inc. (2.7%)
  • Capital Research & Management Co. (Global Investors) (2.1%)
  • BlackRock Fund Advisors (1.7%)
  • Norges Bank Investment Management (1.5%)
  • Invesco Advisers, Inc. (1.1%)
  • Fidelity Management & Research Co. LLC (0.8%)
  • APG Asset Management NV (0.7%)
  • Canada Pension Plan Investment Board (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

  • 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.
  • 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

  • Semiconductor Manufacturing International Corp.
  • Tower Semiconductor Ltd
  • 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.
  • Advanced Wireless Semiconductor Co.
  • Uniquest Corporation
Last Updated on 3 Jul, 2020

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