Taiwan Semiconductor Manufacturing Company Limited Website

Taiwan Semiconductor Manufacturing Company Limited

NYSE-TSM

Company Overview

Taiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support, account management, and engineering services, as well as manufactures masks. Its products are used in mobile devices, high performance computing, automotive electronics, and internet of things markets. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

  • Name

    Taiwan Semiconductor Manufacturing Company Limited

  • CEO

    C. C. Wei

  • Website

    www.tsmc.com

  • Sector

    Semiconductors and Semiconductor Equipment

  • Year Founded

    1987

Company Statistics

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Bulls Say

  • TSMC should consistently earn higher gross margins than competitors thanks to its economies of scale and premium pricing justified by cutting-edge process technologies.

  • TSMC wins when customers compete to offer the most advanced processing systems using the latest process technologies.

  • TSMC will benefit from more semiconductor firms embracing the fabless business model and internet giants designing their own data center chips.

Bears Say

  • Although TSMC is the foundry leader, each generation of process technology matures and commoditizes quickly, forcing the company to deal with pricing pressure.

  • TSMC's new approach to diversify production geographically may add cost pressures with little added resilience to stability.

  • Samsung and Intel are committed to heavy capital spending under the support of the US government. SMIC and other state-supported Chinese foundries also lurk as potential threats.

Source: Morningstar Analysis - Oct 16, 2025

What's happening

Nov 6, 2025 - Dec 6, 2025

TSMC Faces Mixed Sentiments Amid Legal Challenges and AI Demand

  • Strong demand for AI chips is driving bullish sentiment, with significant orders from major clients like Nvidia.
  • Legal disputes concerning former executives have raised concerns about operational security and competitive positioning.
  • Macroeconomic factors, including Taiwan's GDP growth revisions and potential U.S.-Taiwan tariff negotiations, are influencing investor perceptions.

Over the past month, Taiwan Semiconductor Manufacturing Company (TSMC) experienced a modest overall stock movement of 0.4%, which represents an underperformance of 0.8% relative to the S&P 500's return of 1.2%. This performance reflects ongoing challenges within TSMC’s operations amid mixed market sentiments. The company benefitted from strong demand for AI chips, particularly due to increased wafer production requests from clients such as Nvidia.

However, TSMC faced significant headwinds related to legal disputes involving former executives accused of leaking trade secrets to rival Intel. These lawsuits not only attracted attention but also contributed to bearish sentiment among investors who were concerned about the implications for TSMC’s reputation in a highly competitive semiconductor landscape.

Investor discussions on social media highlighted both optimism regarding TSMC's crucial role in advancing AI technologies and apprehensions about its ability to maintain process leadership against rising competition from companies like Intel. Despite reporting substantial year-over-year sales growth, there were indications that this pace had slowed compared to previous quarters, raising sustainability questions amidst fluctuating demand dynamics.

Macroeconomic factors further shaped investor perceptions; Taiwan's GDP growth was revised upward while lingering concerns over potential U.S.-Taiwan tariff negotiations weighed on traders' minds. Such geopolitical considerations could impact future earnings prospects as TSMC navigates complex international relations within the semiconductor sector.

Overall, while TSM outperformed the Information Technology (XLK) sector by 50.7%, its recent performance underscores a cautious outlook amid legal challenges and competitive pressures that may hinder more aggressive growth strategies moving forward.

NYSE:TSM