A Financial Analysis on Taiwan Semiconductor Manufacturing Company

Jinghan Xu ()
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Jinghan Xu: Northeast Agricultural University, College of Economics and Management

A chapter in Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025), 2025, pp 946-955 from Springer

Abstract: 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.

Keywords: Value Investment; Semiconductor Industry; TSMC; Financial Analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-748-9_103

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