Investment Detail Report | Release date 18-12-2023 | Rating as of 18-12-2023 | Currency: USD | Industry: Semiconductors Page 1 of 2

Taiwan Semiconductor Manufacturing Co Ltd ADR TSM QQQQ

ESG Risk Rating Assessment1
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6-Dec-2023
Taiwan Semiconductor Manufacturing Co. is the world's Fair Value Uncertainty Economic Moat Sector Style Market Cap (Mil) Sales (Mil) Last Close
largest dedicated chip foundry, with almost 60% market $139.00 Medium Wide Technology Large Core 484,071 2,161,739 102.93
share. TSMC was founded in 1987 as a joint venture of
Philips, the government of Taiwan, and private investors. It High 20.30 23.54 25.77 31.62 43.02 46.57 59.71 109.70 142.20 145.00 110.69 10 Yr Range(High/Low)
Low 15.70 16.44 17.32 20.45 28.75 35.22 34.21 42.70 107.58 59.43 73.77 145.00-15.70
went public as an ADR in the U.S. in 1997. TSMC's scale and
400.0 52 Wk Range(High/Low)
high-quality technology allow the firm to generate solid 110.69-72.84
147.0
operating margins, even in the highly competitive foundry Price Volatility
53.0
business. Furthermore, the shift to the fabless business Monthly High/Low
model has created tailwinds for TSMC. The foundry leader 19.0 Rel Strength to S&P 500
has an illustrious customer base, including Apple, AMD, and 6.0 Split
Nvidia, that looks to apply cutting-edge process technologies 2.0
to its semiconductor designs. TSMC employs more than 40.0 Trading Volume (Million)
73,000 people.
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD Stock Performance
4.6 31.2 4.9 30.5 41.9 -3.5 62.9 90.6 11.7 -36.8 40.6 Total Return %
Growth Rates (Compound Annual) -8.4 20.6 13.2 9.4 32.9 5.4 40.0 85.0 -13.4 -31.0 30.8 +/- Market
Grade: B 1 Yr 3 Yr 5 Yr 10 Yr -25.0 3.6 10.4 -0.7 4.5 5.7 9.7 35.4 -29.5 0.3 -46.9 +/- Industry
Revenue % 42.6 28.4 18.3 16.2 2.9 2.2 — 3.3 2.9 3.6 3.5 1.6 1.6 2.4 1.8 Dividend Yield %
Operating Income % 72.5 44.4 23.7 20.0 91392 115313 109647 145709 199419 191195 286576 492708 575946 378695 484071 Market Cap 元Mil
Earnings/Share % 67.6 41.0 23.6 20.1
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TTM Financials (TWD)
Dividends % 4.2 -4.0 9.2 14.0 103136 106998 133925 158741 226389 216173
Book Value/Share % 35.1 21.6 14.2 15.1 597003 762835 843513 947909 977443 2 5 5 5 1 9 Revenue 元Mil
Stock Total Return 37.3 1.1 24.9 21.2 47.1 49.5 48.7 50.1 50.6 48.3 46.1 53.1 51.6 59.6 57.0 Gross Margin %
+/- Industry -42.2 -18.2 -6.3 -1.9 210020 296831 321730 377911 386657 383624 372701 566784 649981 1121279 986302 Oper Income 元Mil
+/- Market 27.7 -7.7 14.0 13.5 35.2 38.9 38.1 39.9 39.6 37.2 34.8 42.3 41.0 49.5 45.6 Operating Margin %
183978 254301 302851 331714 344998 363053 353948 510744 592359 992923 872083 Net Income 元Mil
Profitability Analysis
35.50 49.05 58.40 63.95 66.50 70.00 68.25 98.50 114.20 191.45 168.15 Earnings Per Share 元
Grade: A Current 5 Yr Avg Ind Mkt
Return on Equity % 28.7 28.7 15.3 12.1 15.18 14.98 0.00 30.38 35.23 41.17 61.87 50.02 52.55 54.77 55.95 Dividends 元
Return on Assets % 17.2 19.1 8.8 3.4 5186 5186 5186 5186 5186 5186 5186 5186 5186 5186 5186 Shares Mil
Revenue/Employee 元K 29576.4 24183.7 — 0.0 5.18 5.82 6.56 7.66 9.24 9.93 10.22 12.36 14.46 17.19 20.60 Book Value Per Share 元
Fixed Asset Turns 0.8 0.9 1.4 — 347384 421524 529879 539835 585318 573954 615139 822666 1112161 1610599 1334020 Oper Cash Flow 元Mil
Inventory Turns 3.9 5.4* 3.1 —
-290 -292 -262 -333 -336 -323 -470 -517 -848 -1090 -1121 Cap Spending 元Bil
Gross Margin % 57.0 51.7 49.2 — 57038 129124 268079 206741 249430 251272 145387 305885 263924 520973 212598 Free Cash Flow 元Mil
Operating Margin % 45.6 41.0 23.9 —
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TTM Profitability
Net Margin % 40.3 37.5 19.6 14.3
Free Cash Flow/Rev % 9.8 20.1 71.2 — 16.5 18.4 19.2 18.7 17.8 17.8 16.3 20.3 18.3 22.9 17.2 Return on Assets %
R&D/Rev % 7.2 8.0 15.5 — 23.8 27.4 27.3 26.0 24.2 23.0 21.6 29.6 29.7 39.3 28.7 Return on Equity %
0.54 0.55 0.54 0.54 0.50 0.51 0.49 0.53 0.49 0.52 0.43 Asset Turnover
Financial Position (TWD) 30.8 33.3 35.9 35.0 35.3 35.2 33.1 38.1 37.3 43.9 40.3 Net Margin %
Grade: A 12-22 元Mil 09-23 元Mil 1.5 1.5 1.4 1.4 1.3 1.3 1.4 1.5 1.7 1.7 1.6 Financial Leverage
Cash 1342814 1311807 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 09-23 Financial Health (TWD)
Inventories 221149 262090 210808 213714 191998 153115 91800 56900 25100 256073 613380 839096 937492 Long-Term Debt 元Mil
Receivables 231409 222906
833846 1022234 1194008 1359051 1493747 1660429 1613706 1834811 2149260 2903020 3348350 Total Equity 元Mil
Current Assets 2052897 2082478
Fixed Assets 2735751 3173919 0.25 0.21 0.16 0.11 0.06 0.03 0.02 0.15 0.30 0.30 0.29 Debt/Equity
Intangibles 25999 23411 154513 401780 506972 469443 470313 594843 224250 460287 848720 106633 111244 Working Capital 元Mil
3 3
Total Assets 4964459 5484556 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TTM Valuation
Payables 612213 571824 14.6 16.4 13.1 15.9 18.0 16.6 26.5 31.5 30.5 13.4 19.2 Price/Earnings
Short-Term Debt 119488 7420 0.0 0.0 0.0 — — 0.0 0.0 0.0 0.0 — 1.3 P/E vs. Market
Current Liabilities 986564 970035 4.6 5.4 4.6 5.4 6.4 5.7 8.7 12.2 11.4 5.7 7.7 Price/Sales
Long-Term Debt 839096 937492 3.4 3.8 3.5 3.8 4.3 3.7 5.7 8.8 8.3 4.3 5.0 Price/Book
Total Liabilities 2046627 2111738
8.1 9.9 7.4 9.6 10.8 9.9 15.0 20.6 17.4 7.9 12.5 Price/Cash Flow
Total Equity 2903020 3348350

Valuation Analysis
Current 5 Yr Avg Ind Mkt
Price/Earnings 19.2 23.6 41.1 14.6
Forward P/E 16.4 — — —
Price/Cash Flow 12.5 14.1 2.2 8.9
Price/Free Cash Flow 78.7 50.5 12.1 —
Dividend Yield % 1.8 2.5 1.0 3.7
Price/Book 5.0 6.0 6.9 1.8
Price/Sales 7.7 8.6 8.6 —
PEG Ratio 3.3 — — —
*3Yr Avg data is displayed in place of 5 Yr Avg

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Investment Detail Report | Release date 18-12-2023 | Rating as of 18-12-2023 | Currency: USD | Industry: Semiconductors Page 2 of 2
Quarterly Results (TWD) Close Competitors
Revenue 元 Dec Mar Jun Sep Mkt Cap 元Mil Rev 元Mil P/E ROE%
Most Recent 625531.0 508632.0 480841.0 546732.0 Samsung Electronics Co 483747463 261620131 15.5 9.3
Previous 438189.0 491075.0 534140.0 613142.0 Ltd
United Microelectronics 632657 235410 9.1 20.8
Rev Growth % Dec Mar Jun Sep
Most Recent 42.8 3.6 -10.0 -10.8 Major Fund Holders
% of shares
Previous 21.2 35.5 43.5 47.9
GS netWIN Technology Eq Fd Mother Fund 0.03
Earnings Per Share 元 Dec Mar Jun Sep
TIGER US PHLX Semiconductor 0.01
Most Recent 57.05 39.90 35.05 40.70
MiraeAsset Insight Master Equity Bal 0.00
Previous 32.05 39.10 45.70 54.15
Contact
Taiwan Semiconductor Phone: +886 35636688
Manufacturing Co Ltd Website: https://www.tsmc.com
ADR
No. 8, Li-Hsin Road 6
Hsinchu, 300-096
1
The ESG Risk Rating Assessment is a representation of Sustainalytics’ ESG Risk Rating.

©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and ®
opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by
Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security,
and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this
ß
information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc.
including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded
or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report.