Eagle Capital Management, LLC on Taiwan Semiconductor Manufacturing Company Limited
Thesis
TSMC is one of Eagle's preferred ways to retain exposure to secular semiconductor growth while reducing dependence on more speculative AI-capex beneficiaries. Its leading-edge manufacturing position makes it the primary foundry for many of the world's most advanced logic chips. Eagle believes TSMC can participate in semiconductor growth for the next five to ten years while preserving its competitive position, although industry competition is likely to become tougher.
“TSMC is the world’s fab, where most leading-edge logic chips, ranging from Apple to NVIDIA, are made.”
Key risks
- A future semiconductor downturn could pressure earnings.
- Capacity shortages have created opportunities for Intel and Samsung to increase competition.