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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 2022 TWDUSD
Revenue2,263.89B75,936.46M
Gross Profit1,316.82B44,169.55M
Operating income1,121.63B37,622.49M
Income before tax1,136.39B38,117.38M
Net income1,016.53B34,096.91M
EBITDA1,558.89B52,289.07M
Diluted EPS39.201.31
Dividends Per Share10.990.36
Total Assets4,964.77B161,532.39M
Total liabilities2,004.29B65,210.91M
Total equity2,945.65B95,838.79M
Operating cash flow1,620.83B54,366.78M
Currency in TWDCurrency in USD

Historical Data

TWD | USD
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 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 2018Dec 2019Dec 2020Dec 2021Dec 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
PER11.44
ROA23.39%
ROE39.75%
Operating margin49.54%
Profit margin44.90%

Management

  • 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. (3.3%)
  • GIC Pte Ltd. (Investment Management) (3.3%)
  • Capital Research & Management Co. (World Investors) (1.9%)
  • BlackRock Fund Advisors (1.8%)
  • Norges Bank Investment Management (1.6%)
  • Labor Pension Fund Supervisory Committee (1.2%)
  • Fidelity Management & Research Co. LLC (1.1%)
  • Yuanta Securities Investment Trust Co., Ltd. (1.0%)
  • Schroder Investment Management Ltd. (0.8%)

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 Company Limited
  • TSMC Europe B.V.
  • 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.
  • SkyWater Technology Inc
  • Amkor Technology, Inc.
  • Vanguard International Semiconductor Corp
  • GlobalFoundries Inc.
  • Sai MicroElectronics Inc. Class A
  • Hana Micron Inc.
  • Episil Technologies Inc.
  • Intel Corporation
  • ITEK, Inc.
  • 3S KOREA Co., Ltd.
  • BCnC Co., Ltd.
  • China Wire & Cable Co., Ltd.
  • KnJ Co., Ltd.
  • LAT CO., LTD.
  • Leaguer (Shenzhen) Microelectronics Corp. Class A
  • Ligitek Electronics Co., Ltd.
  • Mospec Semiconductor Corp.
  • Smoltek Nanotech Holding AB
  • Taiwan Speciality Chemicals Corporation

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Last Updated on 22 Sep, 2023

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