Companies You’ve Never Heard Of: Taiwan Semiconductor
Most Americans are more than familiar with Intel Corporation (NASDAQ:INTC), the world’s largest semiconductor company by revenue and valuation. That company has spent billions of dollars over the past decade marketing its chips to consumers, most recently with television ads starring The Big Bang Theory star Jim Parsons.
But Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is a worthy rival to the better-known Intel. While Intel is the 32nd most valuable company listed on U.S. exchanges, Taiwan Semiconductor is not far behind, as the 43rd-biggest company. That’s because Taiwan Semi actually is better at driving profits than Intel; It has less than half the revenue, but nearly the same amount of profits. (Perhaps because TSM doesn’t have the expense of all those fancy commercials.)
And with reports of late suggesting that Taiwan Semi will be the sole supplier of processors to Apple’s iPhone going forward, after displacing Samsung Electronics (OTCMKTS:SSNLF), TSM stock may soon be worth more than that of its larger, more famous, American counterpart.