Does Taiwan Semiconductor Manufacturing Company Limited have an economic moat?

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a Quality factor score of 84/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the financial characteristics of a moated business.

Is Taiwan Semiconductor Manufacturing Company Limited a buy, hold, or sell?

MoatMap's current signal for Taiwan Semiconductor Manufacturing Company Limited (TSM) is Strong Buy, based on a StockRank of 86/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.

What sector is Taiwan Semiconductor Manufacturing Company Limited in?

Taiwan Semiconductor Manufacturing Company Limited (TSM) operates in the Technology sector, specifically the Semiconductors industry (Taiwan).

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TSM

STRONG BUYAPPROVE

Taiwan Semiconductor Manufacturing Company Limited · Technology · Taiwan · $2.2T · Avg Vol: $6.2B/d

StockRank

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P/E (TTM)

37.7x

ROE

36.2%

D/E

0.2x

Dividend %

0.8%

AI CONVICTION THESIS

TSMC remains the foundational bottleneck of the global AI stack; as Japan accelerates its domestic chip sovereignty and compute infrastructure, TSM is the primary beneficiary of both regional capacity expansion and global high-end logic demand. Despite its size, its pricing power and un-copyable manufacturing moat align perfectly with the Quality-Compounder lens.

COMPANY DESCRIPTION

Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry, providing advanced integrated circuit manufacturing services to fabless design companies. It maintains a dominant market position due to its technological leadership in leading-edge process nodes and massive capital investments, acting as a critical supplier for major global tech companies.

FINANCIAL SUMMARY (USD)

Year	2022	2023	2024	2025	CAGR	TTM	2026E	2027E	Fwd CAGR
Revenue	71.1B	67.9B	90.9B	119.6B	18.9%	128.9B	163.2B	208.9B	32.2%
EPS	30.77	25.39	35.53	52.02	19.1%	11.51	77.72	—	49.4%
Shares	5.2B	5.2B	5.2B	5.2B	0.0%	5.2B	—	—	—
Debt	27.9B	30.0B	32.9B	33.4B	6.2%	34.4B	—	—	—
Equity	91.2B	107.7B	133.3B	168.2B	22.6%	—	—	—	—
Op CF	50.6B	39.0B	57.3B	71.4B	12.2%	73.7B	—	—	—
Inv CF	-37.4B	-28.5B	-27.2B	-35.9B	—	—	—	—	—
Fin CF	-6.3B	-6.4B	-10.9B	-13.8B	—	—	—	—	—

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PRICE (1Y)+3.4%

SMA 50SMA 200

$436.96

RSI (14)

51.1

52W High

$479.00

From 52W High

0.9%

SCORE BREAKDOWN

Quality

ROIC

36.1%96.7

ROE

36.2%94.3

GP/Assets

32.0%72.7

Op. Margin

58.1%99.2

FCF/Assets

12.5%85.9

Piotroski

999.1

Int. Cover

50.0x84.6

D/E Ratio

0.18x54.9

Current Ratio

2.49x62.9

Value

P/E (TTM)

37.7x45.9

EV/EBITDA

175.8x6.0

P/FCF

72.0x27.9

P/B

3105.9x0.1

P/S

17.5x11.5

Div Yield

0.8%36.2

Momentum

52W High %

91%90.8

RS 6M

25%73.9

SMA 50/200

1.22x68.5

EPS Rev 4W

+3.9%92.3

EPS Rev 12W

+39.1%72.2

EPS Improve

+76%44.7

Q Growth

58%69.9

FUNDAMENTALS

Market Cap

$2.2T

P/E (Forward)

21.4x

Gross Margin

61.9%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of TSM are excluded.

Ticker	Company	Mkt Cap	StockRank	Signal
TSM	Taiwan Semiconductor Manufacturing Company Limited(you)	$2.2T	86	STRONG BUY
AVGO	Broadcom Inc.	$1.7T	83	STRONG BUY
NVD.DE	NVIDIA Corporation	$4.7T	90	STRONG BUY
000660.KS	SK hynix Inc.	$1.2T	97	STRONG BUY
MU.MX	Micron Technology, Inc.	$1.3T	98	STRONG BUY
AMD.MX	Advanced Micro Devices, Inc.	$841.7B	93	STRONG BUY
285A.T	KIOXIA HOLDINGS CORPORATION	$312.0B	85	STRONG BUY
TII.DE	Texas Instruments Incorporated	$274.5B	83	STRONG BUY
MRVL1.MX	Marvell Technology, Inc.	$231.7B	83	STRONG BUY
ARM	Arm Holdings plc	$357.0B	68	BUY

Peer medians: ROE 6.9% · P/E 33.0x · Gross margin 32.3%

Taiwan Semiconductor Manufacturing Company Limited (TSM) — Stock Score Summary

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a MoatMap StockRank of 86/100 based on Quality (84/100), Value (21/100), and Momentum (75/100) factor scores. The current signal is STRONG BUY. TSMC remains the foundational bottleneck of the global AI stack; as Japan accelerates its domestic chip sovereignty and compute infrastructure, TSM is the primary beneficiary of both regional capacity expansion and global high-end logic demand. Despite its size, its pricing power and un-copyable manufacturing moat align perfectly with the Quality-Compounder lens.

Key Financial Metrics

Price	$436.96
Market Cap	$2.2T
P/E (TTM)	37.72
P/E (Forward)	21.40
Price/Book	3105.91
Return on Equity	36.2%
Return on Invested Capital	36.1%
Debt/Equity	18.45
Gross Margin	61.9%
Operating Margin	58.1%
Revenue Growth	35.1%
Dividend Yield	0.8%
Free Cash Flow	$31.2B

Taiwan Semiconductor Manufacturing Company Limited operates in the Semiconductors industry, part of the Technology sector (Taiwan).

Frequently Asked Questions

What is Taiwan Semiconductor Manufacturing Company Limited’s (TSM) StockRank?: MoatMap’s StockRank for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 86/100, with a Strong Buy signal. It is a composite of Quality (84), Value (21), and Momentum (75) factor ranks across MoatMap’s 20,000+ stock universe.
Does Taiwan Semiconductor Manufacturing Company Limited have an economic moat?: Taiwan Semiconductor Manufacturing Company Limited (TSM) has a Quality factor score of 84/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Taiwan Semiconductor Manufacturing Company Limited a buy, hold, or sell?: MoatMap’s current signal for Taiwan Semiconductor Manufacturing Company Limited (TSM) is Strong Buy, based on a StockRank of 86/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Taiwan Semiconductor Manufacturing Company Limited in?: Taiwan Semiconductor Manufacturing Company Limited (TSM) operates in the Technology sector, specifically the Semiconductors industry (Taiwan).