Sustainable Growth Advisers, LP on Taiwan Semiconductor Manufacturing Company
Thesis
SGA continues to own TSMC as the leading-edge foundry positioned to benefit from sustained demand for advanced logic and compute. AI accelerators and CPUs are driving additional capacity needs, while high-performance computing, smartphones and automotive provide broader secular demand. Technology leadership, scale and deep customer entrenchment support recurring business and reduce cyclicality relative to the semiconductor industry. SGA maintained an above-average weight and expects strong double-digit revenue and earnings growth over the coming years.
“TSMC remains well-positioned to deliver strong double-digit revenue and earnings growth over the coming years.”