E Daily Stock Pick: Taiwan Semiconductor

A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fourth of four technology sector stocks poised to join my Volio folio this week. One could be my forty-fourth pick for Volio!

That technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.

My subject today is a large-cap semiconductor maker named, Taiwan Semiconductor Manufacturing Co Ltd. Its trading ticker is TSM. This is my first report on Taiwan Semiconductor Manufacturing for this portfolio.

Taiwan Semiconductor Manufacturing is the world's largest dedicated chip foundry, with over 50% market share in 2018 (according to IC Insights). TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997.

The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services. It is also involved in investing activities.

TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC.

The company serves customers in the computer, communications, consumer, and industrial/standard segments in North America, Europe, Japan, China, South Korea, Asia Pacific, the Middle East, and Africa.

The foundry leader has an illustrious customer base, including Apple and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

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This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall ...

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