Taiwan Semiconductor Manufacturing Co (MIC:TSM-RM) Moat Score : 9/10 (As of Jul. 07, 2025)

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What is Taiwan Semiconductor Manufacturing Co Moat Score?

Taiwan Semiconductor Manufacturing Co has the Moat Score of 9, which implies that the company might have Wide Moat - Clear and robust wide moat.

Taiwan Semiconductor Manufacturing Co has Wide Moat: TSMC is a dominant player in semiconductor manufacturing with significant market share, proprietary technology, and economies of scale. Its strong customer relationships and continuous innovation in advanced chip technology provide a robust and durable competitive advantage.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Taiwan Semiconductor Manufacturing Co might have Wide Moat - Clear and robust wide moat.

Competitive Comparison of Taiwan Semiconductor Manufacturing Co's Moat Score

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Taiwan Semiconductor Manufacturing Co's Moat Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Moat Score distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Moat Score falls into.

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Taiwan Semiconductor Manufacturing Co (MIC:TSM-RM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score	Moat Level
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

Taiwan Semiconductor Manufacturing Co Moat Score Related Terms

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Taiwan Semiconductor Manufacturing Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Taiwan Semiconductor Manufacturing Co Ltd (MIC:TSM-RM) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

TSM:USA 2330:Taiwan TSM N:Mexico 0LCV:UK TSFA:Germany TSFA:Germany TSMC34:Brazil TSFA:Bulgaria TSFA:Austria TSM:Argentina

Address

No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096

Website

https://www.tsmc.com

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with mid-60s market share in 2024. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US in 1997. 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 foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

Taiwan Semiconductor Manufacturing Co Headlines

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