TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

Dominant global foundry with a durable technology moat and top-decile returns and cash generation.

Strengths

• Top-decile profitability: net margin 40% (97th), operating margin 45.7% (97th), ROA 17.3% (95th), ROE 27% (90th)
• Wide-moat scale with 25% revenue growth, 56% gross margin, 30% FCF margin and 126x interest coverage

Risks

• Rising customer concentration (top 10 = 78% of revenue) and binary geopolitical/Taiwan-tariff exposure
• Heavy capex commitments for overseas fabs dependent on uncertain government incentives

Notable findings

• High convictionHigh conviction — notable institutional holders, insider buying, and a strong balance sheet
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Strong balance sheetStrong balance sheet — $64.9B cash & investments
• Insider buyingInsider buying — 104 open-market buy(s) by 32 insider(s) (cluster of 32 insiders, ~$1M, last 6mo) Form 4 ↗
• New fund positionNotable fund(s) opened this quarter: Bridgewater Associates, LP
• Notable holderHeld by 9 notable fund(s): FMR LLC, GOLDMAN SACHS GROUP INC, CITADEL ADVISORS LLC +6 more (as of 2026-03-31)
• China exposureAdditionally, any increase in the use of export control restrictions and sanctions to target certain countries and entities, any expansion of the extraterritorial jurisdiction of such measures, or a
• Insider sellingInsider selling — 1 open-market sale(s) by 1 insider(s) (~$14M, last 6mo) Form 4 ↗
• AccumulatingInstitutional holders rose 52→53 QoQ (2025-12-31→2026-03-31)