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
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.
|Headquarters (Founded)||Hsinchu, Taiwan (1987)|
|Market Cap||$64.04 billion|
|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|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
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.
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