In its third-quarter earnings release, Taiwan Semiconductor Manufacturing kept its 2026 capital expenditure unchanged but signaled more aggressive capex beyond 2026. It confirmed talks with Tesla but said any agreement would require TSMC to control fab operations.
TSMC should consistently earn higher gross margins than competitors thanks to its economies of scale and premium pricing justified by cutting-edge process technologies.
Although TSMC is the foundry leader, each generation of process technology matures and commoditizes quickly, forcing the company to deal with pricing pressure.
|
Metric
|
TSM
|
00981
|
005930
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.62 | 68.25 | 9.59 |
Price/Book Value | 10.61 | 2.28 | 2.58 |
Price/Sales | 13.67 | 5.19 | 2.61 |
Price/Cash Flow | 23.30 | 9.80 | 5.17 |
|
Metric
|
TSM
|
00981
|
005930
|
|---|---|---|---|
Quick Ratio | 2.17 | 1.43 | 2.20 |
Current Ratio | 2.46 | 1.87 | 2.83 |
Interest Coverage | — | 4.43 | 242.73 |
|
Metric
|
TSM
|
00981
|
005930
|
|---|---|---|---|
Return on Assets (Normalized) | — | 1.40% | 24.86% |
Return on Equity (Normalized) | — | 3.30% | 33.47% |
Return on Invested Capital (Normalized) | — | 1.69% | 30.09% |
|
1-Day Chart
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