Taiwan Semiconductor: Not Immune To Industry Weakness, But Still A Great Value


  • TSMC reported today positive 4Q financial figures, showing that its business remains resilient during a tough period for the semiconductor industry.
  • Even though TSMC continues to invest aggressively in capex and R&D, free cash flow is improving and reaching new records.
  • Its current valuation is quite low and is likely to increase over the medium to long term.
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Wide shot of Bright Advanced Semiconductor Production Fab Cleanroom with Working Overhead Wafer Transfer System


Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has reported another resilient quarter, even though its guidance for Q1 2023 was somewhat soft. Despite that, free cash flow is improving and valuation is clearly undemanding, making TSMC a great long-term investment in the semiconductor


Earnings surprise (Bloomberg)


Revenue by platform (TSMC)


Revenue by technology (TSMC)


Capital intensity (TSMC)


Free cash flow (TSMC)


Valuation (Bloomberg)

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This article was written by

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Invest in secular growth themes through long-term winners
From my academic training, Mathematics, I intend to focus on the quantitative study, basing my analysis on historical data, bearing in mind my position of "Outsider". 

I invest with a long-term perspective in industries/themes that have secular growth prospects and should deliver strong returns in a time frame of 10-15 years. Currently, I'm invested in Digital Payments/Fintech, Semiconductors, 5G/IoT/Big Data, Electric Vehicles, and the Metaverse.

Disclosure: I/we have a beneficial long position in the shares of TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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