Taiwan Semiconductor Manufacturing Company Limited (TSM)
TSMC is the world's most important chipmaker, acting as the invisible engine room for the tech giants that build our smartphones, AI, and computers.
Is Taiwan Semiconductor Manufacturing Company Limited a good stock for a UK beginner?
The honest version: TSMC is the world's most important chipmaker, acting as the invisible engine room for the tech giants that build our smartphones, AI, and computers.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
AI becomes a permanent, massive pillar of the global economy.
Significant geopolitical shifts affecting regional operations.
What does Taiwan Semiconductor Manufacturing Company Limited do?
TSMC doesn't design its own gadgets; instead, it operates the massive, high-tech factories that manufacture the complex microchips designed by companies like Apple and Nvidia. The cash rolls in from charging these tech giants a fee to turn their blueprints into physical silicon wafers. What matters most is their ability to keep building the world's most advanced chips, which are in huge demand right now for artificial intelligence.
On our factor screen it looks strongest on quality and growth, and weakest on value.
- ✓Pays a dividend - about 0.9% a year
- ✓Growing - revenue up about 36% over the year
- ✓Very profitable - turns about 50% of sales into profit
- !High P/E of 35 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 40%)
- Quality screens high (86/100)
- Growth screens high (85/100)
- Dominant market position as the world's leading chip manufacturer
- Extremely high profit margins compared to typical manufacturing
- Essential partner for the world's largest technology companies
- Geopolitical tensions impacting supply chains or operations
- Rapid changes in technology making current manufacturing processes obsolete
- Economic downturns reducing consumer demand for new gadgets
What do Taiwan Semiconductor Manufacturing Company Limited's numbers mean?
How much money does Taiwan Semiconductor Manufacturing Company Limited make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Taiwan Semiconductor Manufacturing Company Limited pay a dividend?
Yes - Taiwan Semiconductor Manufacturing Company Limited currently pays a dividend of about 0.9% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Taiwan Semiconductor Manufacturing Company Limited report earnings, and how did recent quarters go?
Taiwan Semiconductor Manufacturing Company Limited is next scheduled to report on about 2026-10-15 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-16 | $3.89 | $4.31 | Beat +11% |
| 2026-04-15 | $3.33 | $3.49 | Beat +5% |
| 2026-01-15 | $2.98 | $3.14 | Beat +6% |
| 2025-10-15 | $2.63 | $2.92 | Beat +11% |
| 2025-07-17 | $2.31 | $2.47 | Beat +7% |
| 2025-04-17 | $2.05 | $2.12 | Beat +3% |
Across the last 6 quarters here, Taiwan Semiconductor Manufacturing Company Limited came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Taiwan Semiconductor Manufacturing Company Limited?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Taiwan Semiconductor Manufacturing Company Limited?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Dominant market position as the world's leading chip manufacturer
- Extremely high profit margins compared to typical manufacturing
- Essential partner for the world's largest technology companies
- High reliance on a small number of very large customers
- Extremely expensive to build and maintain cutting-edge factories
- Low dividend yield compared to more mature, slower-growing industries
- Geopolitical tensions impacting supply chains or operations
- Rapid changes in technology making current manufacturing processes obsolete
- Economic downturns reducing consumer demand for new gadgets
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained drop in global demand for high-performance computing chips
- Competitors successfully matching TSMC's manufacturing precision and scale
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.