PDF 原檔:報告_UBS_台積電2330_20261015_original.pdf
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| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_UBS_台積電2330_20261015_001.png |
50KB | 真資料圖 | Figure 8:2004–2026 TSMC P/E、SOX P/E 與相對值(TSMC Rel to SOX P/E,截至 2026-09-30) |
報告_UBS_台積電2330_20261015_003.png |
49KB | 真資料圖 | Figure 9:2005–2026 TSMC P/E、TAIEX P/E 與相對值 |
報告_UBS_台積電2330_20261015_005.png |
55KB | 真資料圖 | UBS 對 TSMC 目標價沿革(NT$,2023-08 至 2026-10,目前 NT$3,650,評等 Buy) |
原始內容
Taiwan Semiconductor Manufacturing
Full speed on capacity expansion, backed by a strong US commitment
Cloud AI demand strengthening, with no signs of slowing
TSMC management remains optimistic of a stronger multi-year Cloud A mega-trend. ts optimism is based on its prudent and comprehensive assessment of data centre construction, power shell build up, component supply, and the financial situation of Cloud service operators. ts capex target was retained at US$60-64bn in 2026, implying a meaningful uptick to US$19.4-23.4bn in Q4 vs US$40.6bn in 9M26. Our recent research highlighted TSMC is further accelerating expansion across N3/N2/A14, and could lift capex to US$90bn in 2027E and US$105bn in 2028E.
tronger commitment to U expansion
TSMC guided the overseas dilution on gross margin to rise to 3-4% in 2027 from a narrowing to 2% (vs. prior 2-3%) in 2026 given the accelerating expansion especially in the US. The second fab in Arizona should start mass production for N3 in Q327, slightly earlier than prior plan. Management also stated that it's in talk with SpaceX/Terafab on potential collaboration, with key principle being to operate the fabs by TSMC. As what we wrote recently, TSMC is also evaluating the possibility to expand outside Arizona, with Texas being an option. The greater ambition to expand global footprint and support reshoring is key in solidifying TSMC's competitive positioning, in our view.
Better Q4 sales guidance, slightly down GM guidance not concerning
Q3 EPS of NT$29.43 was above LSEG consensus of NT$28.67, mostly due to higher sales and OPM of 58.7%. Q3 gross margin of 66.4% was a bit below expectation of 67% into earnings, given N2 dilution. Q4 sales is guided to grow 14% QoQ at mid point, slightly ahead of expectation of ~10% QoQ into earnings, driving full year sales guidance in USD to grow 44% YoY. TSMC guided greater dilution from N2 and overseas expansion, which lowers Q4 GM 40bps QoQ to 66.0% at the mid point of guidance. We view TSMC's investment case on strong growth at sustainable margins with good support in 2027 (UBS GMs up 10bps YoY at 66.7% from 66.6% in 2026) with price hikes to pass on higher costs.
Valuation: maintain Buy and target of NT$3,650
We raise 2026-28E EPS by 2-3% to reflect higher sales even with slightly lower gross margin assumptions. Our new 2028E EPS is 10% above consensus pre-earnings. We view resilient risk/reward for TSMC stock at 16x 2027E PE vs 36% earnings growth in 2027 based on UBSe, and expect the stock to steadily outperform the broader tech sector at least through early 2027, assuming the market volatility persists. Reiterate Buy rating. Our price target is based on 20x 2027-28E PE with a 26% long-term earnings CAGR.
Equities
Taiwan
Semiconductors
12-month rating
12m price target Buy NT$3,650.00
Price (15 Oct 2026)
NT$2,440
RIC: 2330.TWBBG: 2330 TT
Trading data and key metrics
52-wk range NT$2,585.00-1,375.00
Market cap.
NT$63,275b/US$1,952b
hares o/s
25,933m (ORD)
Free float
87%
Avg. daily volume ('000)
28,434
Avg. daily value (m)
NT$68,312.5
Common s/h equity (12/26E)
NT$7667b
P/BV (12/26E)
8.3x
Net debt to EBITDA (12/26E)
NM
| EP (UB , diluted) (TWD) | From | To | % ch | Cons. |
|---|---|---|---|---|
| 12/26E | 109.06 | 112.05 | 3 | 108.51 |
| 12/27E | 148.98 | 152.23 | 2 | 145.29 |
| 12/28E | 202.52 | 205.81 | 2 | 188.02 |
unny Lin
Analyst sunny.lin@ubs.com +886-2-8722 7346
Randy Abrams
Analyst
randy.abrams@ubs.com +886-2-8722 7338
Nicolas Gaudois
Analyst
nicolas.gaudois@ubs.com +65-6495 5148
| Highlights (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
|---|---|---|---|---|---|---|---|---|
| Revenues | 2,161,736 | 2,894,308 | 3,809,054 | 5,614,326 | 7,921,336 | 10,578,173 | 12,948,055 | 15,358,435 |
| EBIT (UB ) | 921,466 | 1,322,053 | 1,936,092 | 3,308,636 | 4,649,402 | 6,275,612 | 7,698,664 | 9,110,458 |
| Net earnings (UB ) | 838,498 | 1,173,268 | 1,717,883 | 2,905,391 | 3,947,441 | 5,336,884 | 6,595,750 | 7,884,988 |
| EP (UB , diluted) (NT$) | 32.34 | 45.24 | 66.24 | 112.05 | 152.23 | 205.81 | 254.36 | 304.08 |
| DP (net) (NT$) | 13.00 | 17.00 | 22.00 | 29.50 | 40.50 | 53.00 | 66.00 | 76.00 |
| Net (debt) / cash | 764,451 | 1,435,557 | 2,075,442 | 2,864,031 | 3,896,841 | 5,665,826 | 8,790,836 | 13,182,484 |
| Profitability/valuation | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| EBIT (UB ) margin % | 42.6 | 45.7 | 50.8 | 58.9 | 58.7 | 59.3 | 59.5 | 59.3 |
| ROIC (EBIT) % | 38.6 | 49.6 | 65.1 | 84.4 | 83.0 | 81.2 | 78.7 | 79.2 |
| EV/EBITDA (UB core) x | 9.1 | 11.0 | 10.8 | 14.7 | 10.4 | 7.5 | 5.8 | 4.6 |
| P/E (UB , diluted) x | 16.8 | 19.7 | 17.6 | 21.8 | 16.0 | 11.9 | 9.6 | 8.0 |
| Equity FCF (UB ) yield % | 2.1 | 3.8 | 3.3 | 1.7 | 2.8 | 4.4 | 7.1 | 9.5 |
| Dividend yield (net) % | 2.4 | 1.9 | 1.9 | 1.2 | 1.7 | 2.2 | 2.7 | 3.1 |
Source: Company accounts, LSEG Eikon, UBS estimates. Metrics marked as (UBS) have had analyst adjustments applied. Valuations: based on an average share price that year, (E): based on a share price of NT$ 2,440.00 on 15-Oct-2026 18:57:40 CST
Earnings forecasts
Figure 1: T MC's operating data
| Q126 | Q226 | Q326E | Q426E | Q127E | Q227E | Q327E | Q427E | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capacity (WPQ/Y, kpcs 8" eq.) Sequential change (%) | 10,495 0% | 10,663 2% | 10,663 0% | 10,798 1% | 10,859 1% | 11,095 2% | 11,196 1% | 11,331 1% | 36,849 6% | 38,233 4% | 40,528 6% | 42,620 5% | 44,480 4% | 47,349 6% |
| Shipment (WPQ/Y, kpcs 8" eq.) Sequential change (%) | 9,392 5% | 9,756 4% | 10,071 3% | 11,400 13% | 11,438 0% | 11,753 3% | 12,211 4% | 12,284 1% | 27,005 -21% | 29,050 8% | 33,802 16% | 40,618 20% | 47,685 17% | 54,226 14% |
| Utilization rate (%) | 89% | 91% | 94% | 106% | 105% | 106% | 109% | 108% | 73% | 76% | 83% | 95% | 107% | 115% |
| ASP (US$) | 3,263 | 3,483 | 3,931 | 4,011 | 4,117 | 4,287 | 4,498 | 4,739 | 2,235 | 2,694 | 3,112 | 3,691 | 4,417 | 5,177 |
| Sequential change (%) | 0% | 7% | 13% | 2% | 3% | 4% | 5% | 5% | 14.8% | 20.5% | 15.5% | 18.6% | 19.7% | 17.2% |
| FX rate (NT$) | 31.6 | 31.6 | 32.0 | 31.8 | 31.8 | 31.8 | 31.8 | 31.8 | 31.2 | 32.1 | 31.1 | 31.8 | 31.8 | 31.8 |
| Other Revenue (NT$m) | 165,991 | 196,673 | 228,332 | 261,702 | 269,553 | 288,421 | 323,112 | 342,499 | 279,218 | 379,846 | 536,501 | 852,698 | 1,223,585 | 1,651,445 |
| Total Revenue (NT$m) | 1,134,103 | 1,270,380 | 1,494,243 | 1,715,599 | 1,767,067 | 1,890,762 | 2,069,663 | 2,193,843 | 2,161,736 | 2,894,308 | 3,809,054 | 5,614,326 | 7,921,336 | 10,578,173 |
| Sequential change (%) | 8% | 12% | 18% | 15% | 3% | 7% | 9% | 6% | -5% | 34% | 32% | 47% | 41% | 34% |
| Capex (US$m) | 11,046 | 15,691 | 13,847 | 22,397 | 22,500 | 22,500 | 22,500 | 22,500 | 30,425 | 29,760 | 40,739 | 63,000 | 90,000 | 105,000 |
| Capex/revenue (%) | 31% | 39% | 30% | 42% | 40% | 38% | 35% | 33% | 44% | 33% | 33% | 36% | 36% | 32% |
| Depreciation (NT$mn) | 5,237 | 6,283 | 6,886 | 7,162 | 7,520 | 8,225 | 8,861 | 9,397 | 16,736 | 20,843 | 21,638 | 25,533 | 34,004 | 45,740 |
| Gross margin (%) | 66.2% | 67.7% | 66.4% | 66.0% | 66.4% | 67.0% | 66.5% | 66.6% | 54.4% | 56.1% | 59.9% | 66.6% | 66.7% | 67.1% |
| Operating margin (%) | 58.1% | 60.3% | 58.7% | 58.7% | 58.8% | 59.2% | 58.4% | 58.5% | 42.6% | 45.7% | 50.8% | 58.9% | 58.7% | 59% |
Source: Company data, UBS estimates
Figure 2: Q326 earnings comparison
| (NT$m) | Actual | Guidance | Q326 - VA | Q326 - Diff. vs VA | Q326 - LSEG | Diff. vs LSEG | UBSe | Q226 - Actual | Q226 - QoQ | Q325 - Actual | Q325 - YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,494,243 | NT$1427.20-1265.6bn (FX: NT$32.0/US$) | 1,461,784 | 2% | 1,456,819 | 3% | 1,462,634 | 1,270,380 | 18% | 989,918 | 51% |
| Revenue (US$m) | 46,270 | US$44.6-45.8bn | 45,265 | 2% | n.m. | 45,707 | 35,898 | 29% | 30,070 | 54% | |
| Gross profit | 992,379 | 972,779 | 2% | 968,908 | 2% | 980,859 | 860,311 | 15% | 588,543 | 69% | |
| - Gross margin | 66.4% | 65.0-67.0% | 66.5% | -13bps | 66.5% | -9bps | 67.1% | 67.7% | -131bps | 59.5% | 696bps |
| Operating profit | 876,445 | 853,142 | 3% | 848,353 | 3% | 861,775 | 766,603 | 14% | 500,685 | 75% | |
| - OP margin | 58.7% | 56.0-58.0% | 58.4% | 29bps | 58.2% | 42bps | 58.9% | 60.3% | -169bps | 50.6% | 808bps |
| Non-op profit | 34,594 | 29,454 | 17% | 36,768 | -6% | 22,718 | 95,827 | -64% | 24,684 | 40% | |
| Pre-tax profit | 911,039 | 882,596 | 3% | 885,121 | 3% | 884,493 | 862,430 | 6% | 525,369 | 73% | |
| Tax | -147,698 | -150,093 | -2% | -143,161 | 3% | -145,941 | -155,649 | -5% | -73,614 | 101% | |
| - Tax rate | 16.2% | 17.0% | -79bps | 16.2% | 4bps | 16.5% | 18.0% | -184bps | 14.0% | 220bps | |
| Net profit | 763,341 | 733,358 | 4% | 741,960 | 3% | 738,332 | 706,562 | 8% | 452,301 | 69% | |
| EPS (NT$) | 29.43 | 28.65 | 3% | 28.67 | 3% | 28.47 | 27.25 | 8% | 17.44 | 69% |
Source: Company data, Visible Alpha, LSEG, UBS estimates
Figure 3: Revenue mix by platform
| Revenue mix by platform | Q326 | Q226 | Q126 | Q425 | Q325 | Q225 | Q125 | Q424 | Q324 | Q224 | Q124 | Q423 | Q323 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Smartphone | 21% | 22% | 26% | 32% | 30% | 27% | 28% | 35% | 34% | 33% | 38% | 43% | 39% |
| HPC | 68% | 66% | 61% | 55% | 57% | 60% | 59% | 53% | 51% | 52% | 46% | 43% | 42% |
| IoT | 4% | 5% | 6% | 5% | 5% | 5% | 5% | 5% | 7% | 6% | 6% | 5% | 9% |
| Auto | 4% | 4% | 4% | 5% | 5% | 5% | 5% | 4% | 5% | 5% | 6% | 5% | 5% |
| Digital consumer electronics | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 2% | 2% | 2% | 2% |
| Others | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 3% |
Source: Company data, UBS
Figure 4: Wafer revenue mix by technology
| Wafer revenue mix by technology | Q326 | Q226 | Q126 | Q425 | Q325 | Q225 | Q125 | Q424 | Q324 | Q224 | Q124 | Q423 | Q323 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2nm | 8% | 3% | |||||||||||
| 3nm | 33% | 30% | 25% | 28% | 23% | 24% | 22% | 26% | 20% | 15% | 9% | 15% | 6% |
| 5nm | 28% | 33% | 36% | 35% | 37% | 36% | 36% | 34% | 32% | 35% | 37% | 35% | 37% |
| 7nm | 10% | 11% | 13% | 14% | 14% | 14% | 15% | 14% | 17% | 17% | 19% | 17% | 16% |
| 16/20nm | 6% | 6% | 7% | 6% | 7% | 7% | 7% | 7% | 8% | 9% | 9% | 8% | 10% |
| 28nm | 6% | 6% | 7% | 6% | 7% | 7% | 7% | 6% | 7% | 8% | 8% | 7% | 10% |
| 40/45nm | 2% | 2% | 3% | 3% | 3% | 3% | 3% | 3% | 4% | 5% | 5% | 4% | 6% |
| 65nm | 4% | 4% | 4% | 4% | 4% | 3% | 4% | 4% | 4% | 3% | 4% | 5% | 6% |
| 90nm-0.13um | 1% | 2% | 2% | 2% | 2% | 3% | 3% | 3% | 3% | 3% | 4% | 4% | 4% |
| ≥0.15um | 2% | 3% | 3% | 2% | 3% | 3% | 3% | 3% | 5% | 5% | 5% | 5% | 5% |
Source: Company data, UBS
Figure 5: Revisions to our earnings estimates
| (NT$ mn) | New - 2026E | New - 2027E | New - 2028E | Old - 2026E | Old - 2027E | Old - 2028E | Change - 2026E | Change - 2027E | Change - 2028E |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 5,614,326 47% | 7,921,336 | 10,578,173 | 5,476,015 44% | 7,702,256 41% | 10,318,264 34% | 3% | 3% | 3% |
| - YoY chg Revenue (US$ mn) - YoY chg | 176,868 45% | 41% 249,099 41% | 34% 332,647 34% | 172,213 41% | 240,695 40% | 322,446 34% | 3% | 3% | 3% |
| Gross profit - Gross margin | 3,736,635 66.6% | 5,279,963 66.7% | 7,098,535 67.1% | 3,670,122 67.0% | 5,179,398 67.2% | 7,000,469 67.8% | 2% | 2% | 1% |
| Operating profit - Operating margin | 3,308,636 58.9% | 4,649,402 58.7% | 6,275,612 59.3% | 3,234,125 59.1% | 4,555,628 59.1% | 6,185,603 59.9% | 2% | 2% | 1% |
| Net profit - Net margin | 2,905,391 51.7% | 3,947,441 49.8% | 5,336,884 50.5% | 2,827,838 51.6% | 3,863,186 50.2% | 5,251,406 50.9% | 3% | 2% | 2% |
| EPS (NT$) | 112.05 | 152.23 | 205.81 | 109.06 | 148.98 | 202.52 | 3% | 2% | 2% |
| - YoY chg | 69% | 36% | 35% | 65% | 37% | 36% |
Source: UBS estimates
Figure 6: UB earnings estimates vs. consensus
| (NT$m) | UBSe - 2026E | UBSe - 2027E | UBSe - 2028E | Consensus - 2026F | Consensus - 2027F | Consensus - 2028F | Difference - 2026E | Difference - 2027E | Difference - 2028E |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 5,614,326 | 7,921,336 | 10,578,173 | 5,473,474 | 7,565,728 | 9,527,866 | 3% | 5% | 11% |
| - YoY chg | 47% | 41% | 34% | 44% | 38% | 26% | |||
| Gross profit | 3,736,635 | 5,279,963 | 7,098,535 | 3,648,290 | 5,075,511 | 6,368,013 | 2% | 4% | 11% |
| - Gross margin | 66.6% | 66.7% | 67.1% | 66.7% | 67.1% | 66.8% | |||
| Operating profit | 3,308,636 | 4,649,402 | 6,275,612 | 3,210,186 | 4,484,151 | 5,639,038 | 3% | 4% | 11% |
| - Operating margin | 58.9% | 58.7% | 59.3% | 58.6% | 59.3% | 59.2% | |||
| Net profit | 2,905,391 | 3,947,441 | 5,336,884 | 2,803,055 | 3,838,392 | 4,855,556 | 4% | 3% | 10% |
| - Net margin | 51.7% | 49.8% | 50.5% | 51.2% | 50.7% | 51.0% | |||
| EPS (NT$) | 112.05 | 152.23 | 205.81 | 108.02 | 147.67 | 186.54 | 4% | 3% | 10% |
| - YoY chg | 69% | 36% | 35% | 63% | 37% | 26% |
Source: Visible Alpha, UBS estimates
Figure 7: Earnings forecasts
| (NT$ mn) | 2025 | Q126 | Q226 | Q326E | Q426E | 2026E | Q127E | Q227E | Q327E | Q427E | 2027E | 2028E | 2029E | 2030E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,809,054 | 1,134,1031,270,3801,494,2431,715,5995,614,3261,767,067 | 1,890,762 | 2,069,6632,193,8437,921,33610,578,17312,948,05515,358,435 | ||||||||||
| - YoY chg (%) | 32% | 35% | 36% | 51% | 64% | 47% | 56% | 49% | 39% | 28% | 41% | 34% | 22% | 19% |
| - QoQ chg (%) | - | 8% | 12% | 18% | 15% | - | 3% | 7% | 9% | 6% | - | - | - | - |
| Revenue (US$ mn) | 122,031 | 35,898 | 40,202 | 46,724 | 53,950 | 176,868 | 55,568 | 59,458 | 65,084 | 68,989 | 249,099 | 332,647 | 407,172 | 482,970 |
| - YoY chg (%) | 35% | 41% | 34% | 41% | 60% | 45% | 55% | 48% | 39% | 28% | 41% | 34% | 22% | 19% |
| - QoQ chg (%) | - | 6% | 12% | 16% | 15% | - | 3% | 7% | 9% | 6% | - | - | - | - |
| Gross profit | 2,281,294 | 751,295 | 860,311 | 992,379 | 1,132,6503,736,6351,173,574 | 1,267,475 | 1,377,1121,461,8025,279,963 | 7,098,535 | 8,678,054 | 10,284,569 | ||||
| - Gross margin | 59.9% | 66.2% | 67.7% | 66.4% | 66.0% | 66.6% | 66.4% | 67.0% | 66.5% | 66.6% | 66.7% | 67.1% | 67.0% | 67.0% |
| Operating profit | 1,936,092 | 658,966 | 766,603 | 876,445 | 1,006,6223,308,6361,038,795 | 1,118,862 | 1,207,9521,283,7934,649,402 | 6,275,612 | 7,698,664 | 9,110,458 | ||||
| - OP margin | 50.8% | 58.1% | 60.3% | 58.7% | 58.7% | 58.9% | 58.8% | 59.2% | 58.4% | 58.5% | 58.7% | 59.3% | 59.5% | 59.3% |
| Non-op profit | 105,571 | 28,834 | 95,827 | 34,594 | 27,584 | 186,839 | 25,967 | 27,188 | 28,947 | 31,611 | 113,712 | 162,788 | 259,658 | 402,142 |
| Pre-tax profit | 2,041,663 | 687,800 | 862,430 | 911,039 | 1,034,2063,495,4751,064,7621,146,0501,236,8991,315,4034,763,114 | 6,438,400 | 7,958,322 | 9,512,599 | ||||||
| Net profit | 1,717,883 | 572,480 | 706,562 | 763,064 | 863,285 | 2,905,391 | 888,799 | 928,023 | 1,032,5341,098,0853,947,441 | 5,336,884 | 6,595,750 | 7,884,988 | ||
| Reported EPS (NT$) | 66.26 | 22.08 | 27.25 | 29.43 | 33.29 | 112.05 | 34.28 | 35.79 | 39.82 | 42.35 | 152.23 | 205.81 | 254.36 | 304.08 |
| - YoY chg (%) | 46% | 58% | 77% | 69% | 71% | 69% | 55% | 31% | 35% | 27% | 36% | 35% | 24% | 20% |
| - QoQ chg (%) | - | 13% | 23% | 8% | 13% | - | 3% | 4% | 11% | 6% | - | - | - | - |
Source: Company data, UBS estimates
Figure 8: T MC's valuation relative to OX
Source: Company data, LSEG, UBS estimates. Note: Monthly data, updated to 30/9/2026
Figure 10: T MC's 12-month forward PE (x)
Source: Company data, LSEG, UBS estimates
Figure 9: T MC's valuation relative to TAIEX
Source: Company data, LSEG, UBS estimates. Note: Monthly data, updated to 30/9/2026
Figure 11: T MC's 12-month forward P/BV (x)
Source: Company data, LSEG, UBS estimates
Taiwan emiconductor Manufacturing (2330.TW)
| Income tatement (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/29E | 12/30E |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 2,161,736 | 2,894,308 | 3,809,054 | 5,614,326 | 47.4 | 7,921,336 | 41.1 | 10,578,173 | 12,948,055 | 15,358,435 |
| Gross profit | 1,175,111 | 1,624,354 | 2,281,294 | 3,736,635 | 63.8 | 5,279,963 | 41.3 | 7,098,535 | 8,678,054 | 10,284,569 |
| EBITDA (UB ) | 1,453,657 | 1,984,850 | 2,624,188 | 4,120,590 | 57.0 | 5,730,724 | 39.1 | 7,730,133 | 9,575,148 | 11,409,944 |
| Depreciation & amortisation | (532,191) | (662,797) | (688,096) | (811,954) | -18.0 | (1,081,322) | -33.2 | (1,454,522) | (1,876,484) | (2,299,487) |
| EBIT (UB | 921,466 | 1,322,053 | 1,936,092 | 3,308,636 | 70.9 | 4,649,402 | 40.5 | 6,275,612 | 7,698,664 | 9,110,458 |
| ) Associates & investment income | 4,655 | 4,879 | 5,497 | 4,833 | -12.1 | 800 | -83.4 | 800 | 800 | 800 |
| Other non-operating income | 10,704 | 11,125 | 13,868 | 75,953 | NM | 706 | -99.1 | 706 | 706 | 706 |
| Net interest | 42,347 | 67,781 | 86,206 | 106,053 | 23.0 | 112,205 | 5.8 | 161,282 | 258,152 | 400,636 |
| Exceptionals (incl goodwill) | 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 |
| Pre-tax profit | 979,171 | 1,405,839 | 2,041,663 | 3,495,475 | 71.2 | 4,763,114 | 36.3 | 6,438,400 | 7,958,322 | 9,512,599 |
| Tax | (141,404) | (233,407) | (326,266) | (588,990) | -80.5 | (814,565) | -38.3 | (1,100,408) | (1,361,465) | (1,626,503) |
| Profit after tax dividends | 837,768 | 1,172,432 0 | 1,715,397 0 | 2,906,485 | 69.4 | 3,948,549 | 35.9 | 5,337,992 | 6,596,858 | 7,886,096 |
| Preference | 0 | 836 | 2,486 | 0 (1,095) | - - | 0 (1,108) | - -1.2 | 0 (1,108) | 0 (1,108) | 0 |
| Minorities | 730 0 | 0 | - | 0 | 0 | (1,108) 0 | ||||
| Extraordinary items | 0 | 0 | 0 | - | 5,336,884 | |||||
| Net earnings (local GAAP) | 838,498 | 1,173,268 | 1,717,883 | 2,905,391 | 69.1 | 3,947,441 | 35.9 | 6,595,750 | 7,884,988 | |
| Net earnings (UB ) | 838,498 | 1,173,268 | 1,717,883 | 2,905,391 | 69.1 | 3,947,441 | 35.9 | 5,336,884 | 6,595,750 | 7,884,988 |
| Tax rate (%) | 14.4 | 16.6 | 16.0 | 16.9 | 5.4 | 17.1 | 1.5 | 17.1 | 17.1 | 17.1 |
| Per hare (NT$) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/29E | 12/30E |
| EPS (UBS, diluted) EPS (local GAAP, diluted) | 32.34 32.34 | 45.24 45.24 | 66.24 66.24 | 112.05 112.05 | 69.1 | 152.23 | 35.9 35.9 | 205.81 205.81 | 254.36 254.36 | 304.08 304.08 |
| EPS (UBS, basic) | 32.34 | 45.25 | 66.24 | 112.05 | 69.1 69.1 | 152.23 152.23 | 35.9 | 205.81 | 254.36 | 304.08 |
| DPS (net) | 13.00 | 17.00 | 22.00 | 37.3 | 53.00 | 66.00 | 76.00 | |||
| (NT$) 1 | 52.86 | 70.80 | 92.77 | 29.50 | 34.1 54.5 | 40.50 193.93 | 35.3 | 261.91 | 326.73 | 392.76 |
| Cash EPS (UBS, diluted) Book value per share | 133.38 | 165.36 | 208.99 | 143.36 295.66 | 41.5 | 410.39 | 38.8 | 567.20 | 988.63 | |
| Average shares (diluted) | 25,931 | 25,934 | 25,934 | 25,930 | 0.0 | 25,931 | 0.0 | 25,931 | 757.55 25,931 | 25,931 |
| Balance heet (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/30E | |
| Cash and equivalents | 1,687,644 | 2,422,020 | 3,068,595 | 3,847,544 | 25.4 | 4,870,354 | 26.6 | 6,629,339 | 12/29E | 14,125,997 |
| Other current assets | 506,388 | 666,332 | 748,536 | 1,480,839 | 97.8 | 1,882,464 | 27.1 | 2,536,990 | 9,744,349 2,991,111 | 3,630,432 |
| Total current assets | 2,194,033 | 3,088,352 | 3,817,131 | 5,328,383 | 39.6 | 6,752,817 | 26.7 | 9,166,329 | 12,735,460 | 17,756,429 |
| Net tangible fixed assets Net intangible fixed assets | 3,064,475 22,767 | 3,234,980 26,283 | 3,691,841 | 5,010,938 | 35.7 | 6,791,616 24,075 | 35.5 0.0 | 8,676,095 24,075 | 10,297,610 24,075 | 11,496,124 24,075 |
| nvestments / other assets | 24,953 | 24,075 | -3.5 | 593,735 | 654,021 | |||||
| 251,097 | 342,323 | 399,100 | 444,309 | 11.3 | 499,418 | 12.4 | 747,725 | |||
| Total assets | 5,532,371 | 6,691,938 | 7,933,024 | 10,807,704 | 36.2 | 14,067,926 | 30.2 | 18,460,233 | 23,711,166 | 30,024,352 |
| Trade payables & other ST liabilities | 904,290 | 1,204,667 | 1,321,094 | 1,800,337 | 36.3 | 2,008,655 | 11.6 | 2,202,597 | 2,433,232 213,198 | 2,623,189 |
| Short term debt Total current liabilities | 9,293 913,583 | 59,858 | 136,926 1,458,019 | 213,198 2,013,535 | 55.7 38.1 | 213,198 2,221,853 | 0.0 | 213,198 2,415,795 | 2,646,430 | 213,198 2,836,387 |
| Long term debt | 913,900 | 1,264,525 | 856,228 | 770,315 | -10.0 | 760,315 | -1.3 | 740,315 | 730,315 | |
| 926,605 | 10.3 | 750,315 | ||||||||
| Other long term liabilities | 221,625 | 177,233 | 157,982 | 311,835 | 97.4 | 398,762 0 | 27.9 | 540,931 | 635,153 | 776,459 |
| Preferred shares Total liabilities (incl pref shares) | 0 2,049,108 | 0 2,368,362 | 0 2,472,229 | 0 3,095,684 | - 25.2 | 3,380,931 | - 9.2 | 0 3,707,041 | 0 4,021,898 | 0 4,343,161 |
| Common s/h equity | 3,458,914 24,349 | 35,031 | 41,199 | 45,326 | 41.5 | 0.0 | 45,326 | 25,635,866 | ||
| Minority interests | 4,288,545 | 5,419,596 | 7,666,694 | 10.0 | 10,641,670 45,326 | 38.8 | 14,707,866 | 19,643,942 45,326 | 45,326 | |
| Total liabilities & equity | 5,532,371 | 6,691,938 | 7,933,024 | 10,807,704 | 36.2 | 14,067,926 | 30.2 | 18,460,233 | 23,711,166 | 30,024,352 |
| Cash Flow (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/29E | 12/30E |
| Net income (before pref divs) | 838,498 | 1,173,268 | 1,717,883 | 2,905,391 | 69.1 | 3,947,441 | 35.9 | 5,336,884 | 6,595,750 | 7,884,988 |
| Depreciation & amortisation | 532,191 | 662,797 | 688,096 | 811,954 | 18.0 | 1,081,322 | 33.2 | 1,454,522 | 1,876,484 | 2,299,487 |
| Net change in working capital | 324 (129,046) | (90,088) 80,200 | 160 | (702,567) | - | (323,607) (93,369) | 53.9 - | (527,674) (156,889) | (363,542) (101,756) | (516,833) (155,897) |
| Other operating Operating cash | 1,241,967 | (131,163) | 71,408 3,086,185 | - 35.7 | 6,106,842 | 8,006,935 | ||||
| flow | 1,826,177 | 2,274,976 | 4,611,786 | 49.4 | 9,511,746 | |||||
| Tangible capital expenditure | (949,113) 0 | (955,112) | (1,271,613) 0 | (1,999,809) | -57.3 | (2,862,000) | -43.1 - | (3,339,000) | (3,498,000) | (3,498,000) |
| ntangible capital expenditure | 0 | 0 | - | 0 | 0 | 0 | 0 | |||
| Net (acquisitions) & disposals Other investing | (55,781) 98,774 | (54,143) 144,412 | (37,079) | (67,076) 238,223 | -80.9 45.0 | 0 | - | 0 | 0 | 0 |
| Investing cash | (906,121) | 164,299 | 0 | 0 (3,339,000) | 0 | 0 | ||||
| flow | (864,843) | (1,144,393) | (1,828,662) | -59.8 | (2,862,000) | - -56.5 | (3,498,000) | (3,498,000) | ||
| Equity dividends paid | (291,722) 0 | (363,055) 0 | (466,779) 0 | (622,380) | -33.3 | (803,904) 0 | -29.2 | (1,141,026) | (1,478,147) 0 | (1,763,403) 0 |
| Share issues / (buybacks) | 0 | - | 0 | |||||||
| Other financing | 18,623 | (39,111) | (14,014) | 25,063 | - - | 86,928 | - 246.8 | 142,169 | 94,222 | 141,305 (10,000) |
| Change in debt & pref shares Financing cash flow | 68,204 (204,894) | 55,866 (346,301) | 40,448 (440,345) | (8,849) (606,166) | (10,000) (726,977) | -13.0 -19.9 | (10,000) (1,008,857) | (10,000) (1,393,925) | (1,632,098) | |
| Cash flow inc/(dec) in cash | 130,952 | 615,033 | 651,358 | -37.7 -5.6 | 3,115,010 | |||||
| FX / non cash items | (4,794) | 119,342 | 690,238 (43,662) | 127,591 | - | 1,022,810 0 | 57.0 -100.0 | 1,758,985 0 | 0 | 4,381,648 0 |
| Balance sheet inc/(dec) in | 126,159 | 734,375 | 778,949 | 20.5 | 1,022,810 | 3,115,010 | ||||
| 646,575 | 31.3 | 1,758,985 | 4,381,648 | |||||||
| cash |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts. 1 Cash EPS (UBS, diluted) is calculated using UBS net income adding back depreciation and amortization.
Taiwan emiconductor Manufacturing (2330.TW)
| Valuation (x) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
|---|---|---|---|---|---|---|---|---|
| P/E (local GAAP, diluted) | 16.8 | 19.7 | 17.6 | 21.8 | 16.0 | 11.9 | 9.6 | 8.0 |
| P/E (UBS, diluted) | 16.8 | 19.7 | 17.6 | 21.8 | 16.0 | 11.9 | 9.6 | 8.0 |
| P/CEPS | 10.3 | 12.6 | 12.6 | 17.0 | 12.6 | 9.3 | 7.5 | 6.2 |
| Equity FCF (UBS) yield % | 2.1 | 3.8 | 3.3 | 1.7 | 2.8 | 4.4 | 7.1 | 9.5 |
| Dividend yield (net) % | 2.4 | 1.9 | 1.9 | 1.2 | 1.7 | 2.2 | 2.7 | 3.1 |
| P/BV | 4.1 | 5.4 | 5.6 | 8.3 | 5.9 | 4.3 | 3.2 | 2.5 |
| EV/revenues (core) | 6.1 | 7.6 | 7.4 | NM | 7.5 | 5.5 | 4.3 | 3.4 |
| EV/EB TDA (UBS core) | 9.1 | 11.0 | 10.8 | 14.7 | 10.4 | 7.5 | 5.8 | 4.6 |
| EV/EB T (core) | 14.4 | 16.6 | 14.6 | 18.3 | 12.8 | 9.3 | 7.3 | 5.7 |
| EV/OpFCF (core) | 9.8 | 12.2 | 11.4 | 18.8 | 11.7 | 8.5 | 6.3 | 4.9 |
| EV/op. invested capital | 5.6 | 8.2 | 9.5 | 15.5 | 10.7 | 7.6 | 5.7 | 4.5 |
| Enterprise value (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Market cap. | 14,093,810 | 23,107,982 | 30,242,408 | 63,275,362 | 63,275,362 | 63,275,362 | 63,275,362 | 63,275,362 |
| Net debt (cash) | (736,143) | (1,100,004) | (1,755,499) | (2,469,736) | (3,380,436) | (4,781,333) | (7,228,331) | (10,986,660) |
| Buy out of minorities | 24,349 | 35,031 | 41,199 | 45,326 | 45,326 | 45,326 | 45,326 | 45,326 |
| Pension provisions/other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total enterprise value | 13,382,016 | 22,043,009 | 28,528,108 | 60,850,952 | 59,940,252 | 58,539,355 | 56,092,357 | 52,334,028 |
| Non core assets | (129,442) | (149,040) | (172,370) | (222,986) | (216,399) | (209,813) | (203,226) | (196,639) |
| Core enterprise value | 13,252,574 | 21,893,968 | 28,355,738 | 60,627,965 | 59,723,853 | 58,329,542 | 55,889,131 | 52,137,389 |
| Growth (%) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Revenue | (4.5) | 33.9 | 31.6 | 47.4 | 41.1 | 33.5 | 22.4 | 18.6 |
| EB TDA (UBS) | (6.7) | 36.5 | 32.2 | 57.0 | 39.1 | 34.9 | 23.9 | 19.2 |
| EB T (UBS) | (17.8) | 43.5 | 46.4 | 70.9 | 40.5 | 35.0 | 22.7 | 18.3 |
| EPS (UBS, diluted) | (17.5) | 39.9 | 46.4 | 69.1 | 35.9 | 35.2 | 23.6 | 19.5 |
| Net DPS | 18.2 | 30.8 | 29.4 | 34.1 | 37.3 | 30.9 | 24.5 | 15.2 |
| Margins & Profitability (%) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Gross profit margin | 54.4 | 56.1 | 59.9 | 66.6 | 66.7 | 67.1 | 67.0 | 67.0 |
| EB TDA margin | 67.2 | 68.6 | 68.9 | 73.4 | 72.3 | 73.1 | 74.0 | 74.3 |
| EB T (UBS) margin | 42.6 | 45.7 | 50.8 | 58.9 | 58.7 | 59.3 | 59.5 | 59.3 |
| Net earnings (UBS) margin | 38.8 | 40.5 | 45.1 | 51.7 | 49.8 | 50.5 | 50.9 | 51.3 |
| RO C (EB T) | 38.6 | 49.6 | 65.1 | NM | NM | NM | NM | NM |
| RO C post tax | 33.0 | 41.4 | 54.6 | 70.2 | 68.8 | 67.3 | 65.2 | 65.7 |
| ROE (UBS) | 26.2 | 30.3 | 35.4 | 44.4 | 43.1 | 42.1 | 38.4 | 34.8 |
| Capital structure & Coverage (x) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Net debt / EB TDA | (0.5) | (0.7) | (0.8) | (0.7) | (0.7) | (0.7) | (0.9) | (1.2) |
| Net debt / total equity % | (21.9) | (33.2) | (38.0) | (37.1) | (36.5) | (38.4) | (44.6) | (51.3) |
| Net debt / (net debt + total equity) | % (28.1) | (49.7) | (61.3) | (59.1) | (57.4) | (62.3) | (80.7) | NM |
| Net debt/EV % | (5.5) | (5.0) | (6.2) | (4.1) | (5.6) | (8.2) | (12.9) | (21.0) |
| Capex / depreciation % | 178.3 | 144.1 | 184.8 | NM | NM | NM | 186.4 | 152.1 |
| Capex / revenue % | NM | NM | NM | NM | NM | NM | 27.0 | 22.8 |
| EB T / net interest | - | - | - | - | - | - | - | - |
| Dividend cover (UBS) | 2.5 | 2.7 | 3.0 | 3.8 | 3.8 | 3.9 | 3.9 | 4.0 |
| Div. payout ratio (UBS) % | 40.2 | 37.6 | 33.2 | 26.3 | 26.6 | 25.8 | 25.9 | 25.0 |
| Revenues by division (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Wafer revenue | 1,882,518 | 2,514,461 | 3,272,553 | 4,761,629 | 6,697,751 | 8,926,728 | 10,880,718 | 12,906,248 |
| Others | 279,218 | 379,846 | 536,501 | 852,698 | 1,223,585 | 1,651,445 | 2,067,336 | 2,452,187 |
| Others | 0 | 1 | 0 | (1) | 0 | 0 | 1 | 0 |
| 2,161,736 | 2,894,308 | 3,809,054 | 5,614,326 | 7,921,336 | 10,578,173 | 12,948,055 | 15,358,435 | |
| Total | 12/30E | |||||||
| EBIT (UB ) by division (NT$m) Others | 12/23 921,466 | 12/24 1,322,053 | 12/25 1,936,092 | 12/26E 3,308,636 | 12/27E 4,649,402 | 12/28E 6,275,612 | 12/29E 7,698,664 | 9,110,458 |
| Total | 921,466 | 1,936,092 | 6,275,612 | 7,698,664 | 9,110,458 | |||
| 1,322,053 | 3,308,636 | 4,649,402 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts.
Forecast returns
| Forecast price appreciation | 9.6% |
|---|---|
| Forecast dividend yield | 1.3% |
| Forecast stock return | 50.9% |
| Market return assumption | 6.3% |
| Forecast excess return | .5% |
Company Description
Taiwan Semiconductor Manufacturing (TSMC) is the world's leading dedicated foundry service provider, with annual capacity of about 32m of 8-inch equivalent wafers as of end2024. t operates four 12-inch wafer fabs, four 8-inch wafer fabs and one 6-inch wafer fab in Taiwan. TSMC also manages two 8-inch fabs and one 12-inch fab overseas under wholly owned subsidiaries WaferTech in the US, and TSMC China and TSMC Nanjing in China.
Valuation Method and Risk tatement
We base our price target for TSMC on a PE multiple.
We think TSMC faces a variety of risks, including rapidly changing technology, intense competition, high capital investment and cyclical demand. TSMC also has a history of paying stock options to its employees, which could dilute earnings.
Quantitative Research Review
UBS Global Research publishes a quantitative assessment of its analysts' responses to certain questions about the likelihood of an occurrence of a number of short term factors in a product known as the 'Quantitative Research Review'. The views for this month can be found below. Views contained in this assessment on a particular stock reflect only the views on those short term factors which are a different timeframe to the 12-month timeframe reflected in any equity rating set out in this note. For previous responses please make reference to (i) previous UBS Global Research reports; and (ii) where no applicable research report was published that month, the Quantitative Research Review which can be found at https://neo.ubs.com/quantitative, or contact your UBS sales representative for access to the report or the Quantitative Research Team on ubs-quant-answers@ubs.com. A consolidated report which contains all responses is also available and again you should contact your UBS sales representative for details and pricing or the Quantitative Research Team on the email above.
Taiwan emiconductor Manufacturing
| Question | Response |
|---|---|
| 1. Is the industry structure facing the firm likely to improve or deteriorate over the next six months? Rate on a scale of 1-5 (1 = getting worse, 3 = no change, 5 = getting better, N/A = no view) | |
| 2. Is the regulatory/government environment facing the firm likely to improve or deteriorate over the next six months? Rate on a scale of 1-5 (1 = getting tougher 3 = no change, 5 = getting better, N/A = no view) | 3 |
| 3. Over the last 3-6 months in broad terms have things been improving/no change/getting worse for this stock? Rate on a scale of 1-5 (1 = getting a lot worse, 3 = not much change, 5 = getting a lot better, N/A = no view) | |
| . Relative to the current CONSENSUS EPS forecast, is the next company EPS update likely to lead to: (1 = negative surprise vs consensus, 3 = in-line with consensus, 5 = positive surprise vs consensus expectations, N/A = no view) | |
| 5. What's driving the difference? | |
| 6. Relative to YOUR current earnings forecast, is there relatively greater risk at the next earnings result of:(1 = downside skew risk to earnings, 3 = equal upside or downside risk to earnings, 5 = upside skew risk to earnings, N/A = no view) | |
| 7. What's driving the difference? | |
| 8. Is there an upcoming catalyst for the company over the next three months? | Positive Catalyst |
| 9. Is there an actual or approximate date for the catalyst? | |
| 10. Is the catalyst date an actual or approximate date? | |
| 11. What is the catalyst? |