Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) stock — is it a good business?

Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) stock — is it a good business? — InspectStocks

How it makes money

Manufacturing chips to customers' designs, with related design, mask-making, packaging and testing services

Competes with

SSNLFSamsung Foundry (Samsung Electronics)
INTCIntel Foundry (Intel Corporation)
B
Size
$332.2B
Margin
-20.1%
GFSGlobalFoundries
C
Size
$23.8B
Margin
2.8%
UMCUnited Microelectronics Corporation
C
Size
$40.5B
Margin
17.0%

What it sells5

Wafer fabrication
Manufacturing chips on silicon wafers using customers' circuit designs. Processes include logic chips, radio-frequency chips and chips that combine logic with memory.
Chip design and process support
Design tools, tested building blocks and technical guidance that help customers prepare their chip designs for manufacturing.
Mask making
Making the patterned templates used to transfer a chip design onto a silicon wafer.

Show 2 more

Advanced chip packaging
Combining chips, including stacking chips or placing them side by side, into a package. TSMC's methods include Chip-on-Wafer-on-Substrate (CoWoS), Integrated Fan-Out (InFO) and System on Integrated Chips (SoIC).
Chip testing
Testing manufactured chips to check their operation.

Who buys it3

Fabless chip companies that design chips but hire other companies to manufacture them; TSMC works directly with them on designs, production and delivery.
Technology and system companies that design chips for products such as data-center equipment, phones and consumer electronics.
Integrated device manufacturers that design and manufacture chips and use TSMC for some production.

What it stands on, and what could break it

What the business leans on

1Chip production depends on specialized manufacturing equipment, some of which is available from only a limited number of suppliers.
2Silicon wafers and other materials are essential inputs; most wafer supplies come from a limited number of suppliers, and some materials have sole-source suppliers.
3Factories in Taiwan need reliable electricity and large amounts of water; shortages or interruptions can disrupt production.
4Revenue depends on customer demand for chips and on customers' product plans; a small number of large customers can account for a significant portion of revenue.

What could go wrong

1The semiconductor industry is cyclical: weaker demand or lower prices for products containing chips can reduce orders and factory use.
2If TSMC cannot develop new manufacturing processes in time or compete with other chip manufacturers, customers may choose other suppliers and its production capacity may lose value.
3Power or water shortages, utility outages, or natural disasters could interrupt production at factories, particularly in Taiwan.

Full financial statements →

About Taiwan Semiconductor Manufacturing Co. Ltd.

Chip companies give TSMC their circuit designs, and TSMC manufactures the chips on silicon wafers. It also helps with chip design and masks, tests chips, and packages multiple chips together. In Q2 2026, high-performance computing accounted for 66% (Q2 2026, high confidence) of revenue and smartphones for 22% (Q2 2026, high confidence); the remaining reported categories were internet of things at 5% (Q2 2026, high confidence), automotive at 4% (Q2 2026, high confidence), and digital consumer electronics at 1% (Q2 2026, high confidence).

Head office: Hsinchu, Taiwan
Founded: 1987
Listed on: NYSE
Financial year ends: December 31

Built from Taiwan Semiconductor Manufacturing Co. Ltd.’s own filings with the U.S. Securities and Exchange Commission (SEC). Figures are as reported, with per-share history restated onto today’s share basis. This company files in TWD. Figures are converted to US dollars at $1.00 = 32.9866 TWD, the current rate, applied to every period alike — so growth and margins are the company’s own and not the exchange rate’s. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.

Keep exploring

The themes Taiwan Semiconductor Manufacturing is part of, the highest-graded companies in its industry, and the companies in its sector whose grade rose recently.

The theme it is part of

Highest-graded in Semiconductors

Graded A or B and worth $2B or more: A first, then the largest.

All 71 graded companies in its industry

Grade rose recently in Technology

Rose to A or B on a filing in the last 90 days, worth $2B or more: largest first.

All grade rises

How it makes money

Manufacturing chips to customers' designs, with related design, mask-making, packaging and testing services

Competes with

SSNLFSamsung Foundry (Samsung Electronics)
INTCIntel Foundry (Intel Corporation)
B
Size
$332.2B
Margin
-20.1%
GFSGlobalFoundries
C
Size
$23.8B
Margin
2.8%
UMCUnited Microelectronics Corporation
C
Size
$40.5B
Margin
17.0%

What it sells5

Wafer fabrication
Manufacturing chips on silicon wafers using customers' circuit designs. Processes include logic chips, radio-frequency chips and chips that combine logic with memory.
Chip design and process support
Design tools, tested building blocks and technical guidance that help customers prepare their chip designs for manufacturing.
Mask making
Making the patterned templates used to transfer a chip design onto a silicon wafer.

Show 2 more

Advanced chip packaging
Combining chips, including stacking chips or placing them side by side, into a package. TSMC's methods include Chip-on-Wafer-on-Substrate (CoWoS), Integrated Fan-Out (InFO) and System on Integrated Chips (SoIC).
Chip testing
Testing manufactured chips to check their operation.

Who buys it3

Fabless chip companies that design chips but hire other companies to manufacture them; TSMC works directly with them on designs, production and delivery.
Technology and system companies that design chips for products such as data-center equipment, phones and consumer electronics.
Integrated device manufacturers that design and manufacture chips and use TSMC for some production.

What it stands on, and what could break it

What the business leans on

1Chip production depends on specialized manufacturing equipment, some of which is available from only a limited number of suppliers.
2Silicon wafers and other materials are essential inputs; most wafer supplies come from a limited number of suppliers, and some materials have sole-source suppliers.
3Factories in Taiwan need reliable electricity and large amounts of water; shortages or interruptions can disrupt production.
4Revenue depends on customer demand for chips and on customers' product plans; a small number of large customers can account for a significant portion of revenue.

What could go wrong

1The semiconductor industry is cyclical: weaker demand or lower prices for products containing chips can reduce orders and factory use.
2If TSMC cannot develop new manufacturing processes in time or compete with other chip manufacturers, customers may choose other suppliers and its production capacity may lose value.
3Power or water shortages, utility outages, or natural disasters could interrupt production at factories, particularly in Taiwan.

Full financial statements →

About Taiwan Semiconductor Manufacturing Co. Ltd.

Head office: Hsinchu, Taiwan
Founded: 1987
Listed on: NYSE
Financial year ends: December 31

How it makes money

Competes with

What it sells5

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Taiwan Semiconductor Manufacturing Co. Ltd.

Keep exploring

The theme it is part of

Highest-graded in Semiconductors

Grade rose recently in Technology

How it makes money

Competes with

What it sells5

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Taiwan Semiconductor Manufacturing Co. Ltd.

Keep exploring

The theme it is part of

Highest-graded in Semiconductors

Grade rose recently in Technology

AI chips & accelerators

Taiwan Semiconductor Manufacturing Co. Ltd.

Growth & cash — 4 of 5

Business trend

Share price and grade over time

How it makes money

Competes with

What it sells5

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Taiwan Semiconductor Manufacturing Co. Ltd.

Keep exploring

The theme it is part of

Highest-graded in Semiconductors

Grade rose recently in Technology

How it makes money

Competes with

What it sells5

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Taiwan Semiconductor Manufacturing Co. Ltd.

Keep exploring

The theme it is part of

Highest-graded in Semiconductors

Grade rose recently in Technology

AI chips & accelerators

Taiwan Semiconductor Manufacturing Co. Ltd.

Past performance

Growth & cash — 4 of 5

Business trend

Share price and grade over time