A Financial Analysis on Taiwan Semiconductor Manufacturing Company

DOI

10.2991/978-94-6463-748-9_103How to use a DOI?

Keywords

Value Investment; Semiconductor Industry; TSMC; Financial Analysis

Abstract

This study investigates the significance of value investment in promoting stable returns, risk management, and healthy market development, with a focus on its application in the semiconductor industry. Using TSMC as a case study, the research highlights the firm’s leading position in the global semiconductor market, driven by strong financial performance, advanced technology, and strategic investments in research and development. TSMC's financial stability, demonstrated by its high current ratio, quick ratio, and cash flow ratio, underscores its robust liquidity and risk management capabilities. However, the company’s conservative cash management approach, while mitigating risks, may limit its capacity to seize growth opportunities in a rapidly evolving market. Through Porter’s Five Forces and SWOT analyses, this paper explores the competitive dynamics, including TSMC’s advantages in technical innovation, talent acquisition, and industrial chain integration, as well as challenges such as rising operational costs, geopolitical tensions, and technological blockades. With increasing demand for AI hardware and global expansion initiatives, TSMC remains well-positioned to capitalize on growth opportunities. This research provides critical insights into the strategic importance of value investment and its role in navigating competitive and financial challenges in high-growth industries.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jinghan Xu
PY  - 2025
DA  - 2025/07/03
TI  - A Financial Analysis on Taiwan Semiconductor Manufacturing Company
BT  - Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
PB  - Atlantis Press
SP  - 946
EP  - 955
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-748-9_103
DO  - 10.2991/978-94-6463-748-9_103
ID  - Xu2025
ER  -