The research on the Investment Memorandum based on SWOT, Financial and Valuation Methods: Case of TSMC

Abstract

In recent years, with the advent of technology such as artificial intelligence, the Internet of Things, autonomous vehicles, and 5G communications, the demand for high-performance semiconductors has been increasing steadily. TSMC is the world's largest dedicated independent semiconductor foundry, however, its future investment value requires further investigation. Therefore, this paper will focus on analyzing TSMC from three perspectives: SWOT analysis, valuation analysis, and financial analysis, to discuss its strengths and weaknesses. The findings of this paper indicate that TSMC's main advantages are leading technology, economies of scale, and a broad customer base, while its disadvantages are mainly reflected in the risks brought about by geopolitics. At the same time, compared to other enterprises in the information technology industry, TSMC's valuation is relatively balanced and has high growth potential. At the same time, TSMC's financial situation is very stable and shows a trend of growth, with relatively small financial risks. The research results of this article help investors to have a more comprehensive understanding of the development status and investment value of TSMC, provide certain reference for investment decision-making, and also provide a certain reference basis for TSMC to better develop itself and recognize its own shortcomings.