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NT$2,425.00
Market Capi
NT$63T
Growth-adj P/E (3-yr hist)i
1.2x
Growth-adj P/E (3-yr proj)i
0.5x
P/S 26Ei
12x
P/S 28Ei
7.9x
EV/EBIT 26Ei
20x
EV/EBIT 28Ei
13x
P/E 26Ei
25x
P/E 28Ei
16x
P/S 26Ei
12x
EV/EBIT 26Ei
20x
P/E 26Ei
25x
P/S 28Ei
7.9x
EV/EBIT 28Ei
13x
P/E 28Ei
16x
Revenue
2026E
5.2T
Gross Margini
60%
Hist. CAGRi
19%
Proj. CAGRi
28%
EBIT
2026E
3.0T
Op. Margini
51%
Hist. CAGRi
20%
Proj. CAGRi
33%
Net profit
2026E
2.6T
Net Margini
45%
Hist. CAGRi
19%
Proj. CAGRi
31%
Consensus Target
NT$2,589.58+7%
33 analysts covering
Net cashi
NT$2.0T
Div. Yieldi
1.4%
Buyback Yldi
0.0%
TSMC is the world's dominant pure-play semiconductor foundry: it designs nothing itself, but manufactures integrated circuits to the exact specifications of fabless chip companies. Revenue is reported primarily by technology node and end-market platform rather than discrete named divisions.
TSMC sells exclusively to chip designers — it does not compete with its customers. Apple is the single largest customer, historically accounting for roughly 25% of revenue, followed by Nvidia, AMD, Qualcomm, and Broadcom. North America generates approximately 70% of revenue; China (including HiSilicon) was curtailed by US export controls but still accounts for roughly 10%. The foundry market is a high-complexity oligopoly: only Samsung and Intel offer comparable advanced-node capacity, but neither matches TSMC's yield maturity or customer breadth at 3nm and below.
TSMC's moat rests on accumulated process know-how that cannot be purchased or replicated quickly. Building a competitive leading-edge fab requires not just capital — TSMC plans US$52–56 billion in capex in 2026 alone — but a decade of iterative yield learning and a trusted-partner reputation with the world's most demanding chip designers. Switching costs are extreme: a customer who tape-outs at TSMC re-qualifies every mask layer and IP block if they move fabs, costing 12–24 months and tens of millions of dollars. The result is deep, sticky relationships with Apple, Nvidia, and AMD that are strategically difficult to unwind.
Morris Chang founded TSMC in 1987, inventing the pure-play foundry model and transforming Taiwan into the centre of global semiconductor manufacturing. Before founding TSMC, Chang spent 25 years at Texas Instruments, rising to group vice president. He led TSMC as CEO until 2005, returned for a second stint from 2009 to 2018, and remains the defining intellectual force behind the company's foundry-first philosophy. He retired from the board in 2018.
C.C. Wei has been CEO since 2018 and assumed the additional role of Chairman in June 2024, consolidating operational and strategic leadership under one executive for the first time since Chang's era. Wei holds a PhD in electrical engineering from Yale (1985) and joined TSMC in 1998 after senior technical roles at Texas Instruments, STMicroelectronics, and Chartered Semiconductor. His tenure has coincided with TSMC's ascent to 3nm leadership and the AI-driven acceleration of demand. He was named by Time magazine in September 2024 as one of the 100 most influential people in artificial intelligence.
Other key figures
Wendell Huang serves as CFO and has been the primary voice on capital allocation and margin guidance during earnings calls. Y.P. Chyn and Y.J. Mii serve as co-Chief Operating Officers, managing the day-to-day execution of an increasingly complex global fab network across Taiwan, Arizona, Japan, and Germany.
P/S Ratio
EV/EBIT
P/E Ratio
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in millions of TWD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in millions of TWD.
Margins
Rentability
Balance sheet
Values in millions of TWD.
Liquidity ratios
Debt-to-Equity-Ratio
Q1 2026 revenue came in at US$35.90 billion, up 42% year-over-year in USD terms and modestly above the high end of management's own guidance range of US$34.6–35.8 billion.
Diluted EPS reached NT$22.08, a 58% year-over-year increase, beating the consensus estimate of roughly NT$20.88. Net profit margin expanded to 50.5%, an exceptionally high level for a capital-intensive manufacturer.
Gross margin hit 66.2%, up 390 basis points sequentially, driven by a richer mix of advanced-node wafers. HPC and AI platform revenue surged 20% quarter-over-quarter and now represents 61% of total wafer revenue, with 3nm alone at 25%.
Management raised the full-year 2026 revenue growth forecast to "above 30%" in USD terms and guided Q2 at US$39.0–40.2 billion — a roughly 10% sequential step-up. Capital expenditure is now trending toward the high end of the US$52–56 billion range.
On April 29, 2026, TSMC confirmed plans to ramp five 2nm (N2) fabs in 2026, the most aggressive single-year expansion in the company's history. The N2 process, which entered volume production in Q4 2025, uses gate-all-around transistors and offers up to 15% performance improvement at the same power envelope versus N3.
In May 2026, TSMC's board approved a US$20 billion additional capital injection into its Arizona subsidiary, part of a revised multi-decade US investment program now estimated at roughly US$165 billion. The Arizona Fab 21 Phase 2 accelerated its 3nm production timeline by approximately one year, now targeting high-volume output in 2027.
TSMC and Sony Semiconductor Solutions signed a non-binding MOU to explore a joint venture for next-generation image sensors targeting automotive and robotics AI applications, signalling TSMC's intent to expand beyond pure logic foundry into speciality sensing markets.
Bulls argue that TSMC operates as the sole high-volume producer of leading-edge logic chips — 2nm and below — giving it structural pricing power through at least 2027. The PEG ratio of 0.6 and a consensus price target implying meaningful upside from current levels reflect broad analyst conviction that the AI hardware cycle is still early-innings.
Bears focus on capital intensity and margin headwinds: the 2nm ramp is expected to dilute gross margins by 2–3 percentage points in 2026, overseas fab costs add another 2–4 points of structural drag, and US$52–56 billion in annual capex constrains near-term free cash flow generation substantially.
The most consequential swing factor remains geopolitics. Taiwan's proximity to mainland China means that even low-probability escalation scenarios carry outsized market impact — a risk that no amount of Arizona or Japan diversification fully eliminates in the near term. The pace of AI hyperscaler spending commitments is a secondary swing factor that could move consensus sharply in either direction.
Consensusi
Buy
Average targeti
NT$2,589.58+7%
Highest targeti
NT$3,250.00+34%
Lowest targeti
NT$2,051.00-15%