AllAnalyst Report
logoMorningstarJuly 15, 2021

Taiwan Semiconductor Manufacturing Company Limited: TSMC’s Possible New Fabs Affirm Our View It Is a Key Beneficiary in Electronics Upgrades

Symbols
TSM
Sector(s)
Technology
Rating
Current Price
$119.33
Fair Value
Economic Moat
Stewardship
Summary

Taiwan Semiconductor Manufacturing Company, or TSMC, is the world's largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

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Analyst Profile

Phelix Lee

Equity Analyst
Phelix Lee is an equity analyst for Morningstar Investment Management Asia Limited, a wholly owned subsidiary of Morningstar, Inc. He covers Asia tech stocks, with a focus on Greater China.Before joining Morningstar in 2019, Lee spent five years at a Hong Kong-based brokerage firm as an equity analyst covering small/mid-cap names in tech hardware.Lee holds a Bachelor of Business Administration (Honours) in financial services from the Hong Kong Polytechnic University. He also holds the Chartered Financial Analyst® designation.