Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract chip giant Taiwan Semiconductor Manufacturing (TSM 2.71%) has earned a respected four-star ranking.

With that in mind, let's take a closer look at TSMC and see what CAPS investors are saying about the stock right now.

TSMC facts

Headquarters (founded)

Hsinchu, Taiwan (1987)

Market Cap

$87.9 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$16.4 billion

Management

Chairman/CEO Dr. Morris Chang

CFO Lora Hong

Return on Equity (average, past 3 years)

26.7%

Cash / Debt

$5.1 billion / $3.7 billion

Dividend Yield

2.3%

Competitors

Semiconductor Manufacturing International (SMI)

United Microelectronics (UMC 0.78%)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,402 members who have rated TSMC believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, adamlevy, tapped TSMC as a particularly timely opportunity:

Likely beneficiary of the fallout between Apple (AAPL 0.52%) and Samsung. Even without Apple's business the company will flourish in 2013. IT has contracts with big chip makers like Qualcomm (QCOM -0.20%), NVIDIA (NVDA 3.71%), and Broadcom (NASDAQ: BRCM), and still does some business with Apple. The company is growing its production capacity, as it becomes the largest mobile chip manufacturer in the world. At a P/E [of 16], I believe the company is undervalued.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, TSMC may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.