Ariel International Fund on Taiwan Semiconductor Manufacturing Company Limited
Thesis
Ariel repurchased TSMC after viewing the foundry downturn as an attractive entry point into a structurally advantaged business. The fund believes rapid AI adoption will drive the next phase of growth as smartphone and PC demand stabilizes. TSMC's leadership in advanced process technologies, deep chip-designer relationships and strong pricing power position it to capture sustained growth and margin strength.
“We viewed the recent downturn in the foundry sector as an attractive entry point given the quality and durability of TSMC’s business model.”
Key risks
- Recent foundry-sector downturn
- Smartphone and PC demand remains only stabilizing