This chipmaker is the gem in Taiwan’s high-tech crown

Article Excerpt

Taiwan Semiconductor Manufacturing (ADR symbol TSM on New York), is the world’s largest dedicated contract semiconductor (computer chip) manufacturer with a market capitalization of $552 billion. In 2020, it had 510 different clients, manufactured 11,617 different products using 281 distinct technologies. It holds a share of more than 50% of the global market. TSMC-manufactured semiconductors cover a wide range of applications in the computer, communications, consumer, and industrial segments. These chips are used in end markets such as mobile devices, high-performance computing, and automotive electronics. This broad diversification among clients, and products, helps to smooth fluctuations in demand and maintain high levels of profitability. The company operates in a cyclical industry but has delivered excellent financial results since its listing in 1994. Revenue and profit have grown by about 17% per year. TSMC has significantly increased its capital expenditures over the past few years but has even more ambitious investment plans for the future. Spending amounted to $18 billion in 2020,…