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TSM

9/9 Score

Taiwan Semiconductor Manufacturing Company Limited

Analysis Date: March 9, 2026

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 35.1%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 24.6%

  • Cash Machine

    FCF / Assets > 5%

    Value: 0.14

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 3.7%

  • Share Buybacks

    Share Count is Dropping

    Value: 0.0%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 59.9%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.20x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 2.4%

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