Why Taiwan Semiconductor Will Keep Soaring


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 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.


Headquarters (founded)

Hsinchu, Taiwan (1987)

Market Cap

$87.9 billion



Trailing-12-Month Revenue

$16.4 billion


Chairman/CEO Dr. Morris Chang

CFO Lora Hong

Return on Equity (average, past 3 years)


Cash / Debt

$5.1 billion / $3.7 billion

Dividend Yield



Semiconductor Manufacturing International

United Microelectronics

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 and Samsung. Even without Apple's business the company will flourish in 2013. IT has contracts with big chip makers like Qualcomm , NVIDIA , and Broadcom , 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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The article Why Taiwan Semiconductor Will Keep Soaring originally appeared on Fool.com.

Fool contributor Brian D. Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Qualcomm. Motley Fool newsletter services recommend Apple and NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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