Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract chip giant Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC for short, has earned a coveted five-star ranking.

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

TSMC facts

Headquarters (Founded) Hsinchu, Taiwan (1987)
Market Cap $64.04 billion
Industry Semiconductors
Trailing-12-Month Revenue $13.8 billion
Management Chairman/CEO Dr. Morris Chang
CFO Lora Ho
Return on Equity (Average, Past 3 Years) 23.6%
Cash/Debt $5.78 billion / $1.53 billion
Dividend Yield 3.8%
Competitors MoSys
Semiconductor Manufacturing (NYSE: SMI)
United Microelectronics (NYSE: UMC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,373 members who have rated TSMC believe the stock will outperform the S&P 500 going forward. These bulls include skypilot2005 and DUBLE.

Just last week, skypilot2005 touched on TSMC's big positive: "Low-cost producer in a product that is essentially, a commodity."

As the world's largest chip manufacturing foundry, TSMC boasts fundamentals that remain highly attractive to our community. Thanks to massive economies of scale, TSMC's three-year average operating margin (33.2%) crushes that of smaller rivals like United Micro (4.8%), Semiconductor Manufacturing (-24.5%), and MoSys .

CAPS member DUBLE expands on the bull case:

Underappreciated by the investment community -- market leader, low p/e, super strong balance sheet, very attractive dividend, excellent long term demand prospects as the world adopts digital technology that also spurs demand for analog components ... semiconductor firms are in the beginning stages of a major secular trend that will last 10-30 years ... they are the 'new age' industrials of yester-years.

What do you think about TSMC, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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