Investment strategy of TSMC based on industry research, financial analysis, and PE valuation

Abstract

With the rise of 5G technology, new energy vehicles, IOT and other industries in the last two years, the demand for semiconductor chips has reached a peak, but the slow recovery of wafer fab capacity due to the global economic downturn caused by the impact of the COVID-19 has a very important impact on the current chip supply. This paper conducts a study of the business status of TSMC, the leading semiconductor product company, in three dimensions: industry outlook, financial condition and P/E valuation, and gives data-backed recommendations for future investments. The research in this paper shows that the industry has a broad outlook, good operating status, leading net profit margin in the industry, reasonable investment in technology R&D, and is now in a reasonable valuation range, worthy of continued attention and long-term value investment. This paper provides some help and insight for stockholders and institutions to study the analysis and valuation of the semiconductor product segment track.