TSMC: Industry Leader in Chip Production with Record Profits and Dividends
Key Points:
- TSMC remains the foremost player in chip production, boasting unparalleled technology and profitability.
- Recent dividend distribution marked a significant financial move, impacting both shareholders and market valuation.
- Despite minor monthly revenue dips, year-over-year growth reflects strong market resilience and profitability.
On December 12, TSMC (Taiwan Semiconductor Manufacturing Company) reinforced its position as a powerhouse in the semiconductor industry. Holding the title for the largest production capacity and the most advanced technology, TSMC continues to demonstrate remarkable profitability. The company’s stock price has surged recently, and its commitment to returning value to shareholders is evident through substantial dividend payments.
In its latest move, TSMC declared a dividend of NT$5 per share, totaling NT$129.7 billion (approximately NT$29.32 billion). This decision is projected to reduce TSMC’s market capitalization by the same amount, influencing the weighted index by about 40 points. Notably, the largest financial beneficiary from this distribution was a major fund, which collected an impressive NT$8.2 billion.
Among individual shareholders, TSMC’s founder, Morris Chang, received a significant dividend payout of 625 million NT$ for his investment of 125,000 shares. Former chairman Liu Deyin also benefited, earning dividends amounting to NT$64.55 million from his holding of 12,900 shares. Current chairman and CEO, Wei Zhejia, received NT$36 million from his possession of 7,217 shares.
In its November performance report, TSMC recorded consolidated revenues of NT$343.614 billion. While there was a month-on-month decline of 6.5%, year-over-year revenue still marked a robust increase of 24.5%. This performance secured TSMC’s position as the third highest in its history, bolstered by a cumulative revenue of NT$3.47 trillion from January to November — an impressive year-over-year growth of 32.8%.
Crucially, TSMC has maintained a gross profit margin exceeding 50%, a feat that continues even amid the mass production of cutting-edge processes like 3nm and 2nm. This ability to produce high-quality products while sustaining profitability sets TSMC apart from its competitors in the semiconductor manufacturing landscape.
The company has also emerged as a frontrunner in the rapidly growing AI market over recent years. The market capitalization of its U.S. ADRs has multiplied, with the overall value reaching an estimated US$1.6 trillion, placing TSMC as the eighth largest company globally.
As TSMC progresses, it remains poised for future growth and stability, underscoring its leadership role in the semiconductor sector.
