The Rise of Taiwan Semiconductor: A Champion of Innovation in the Digital Age

3 Reasons Taiwan Semiconductor Is a Must-Buy for Long-Term Investors

March 15, 2025

Taiwan Semiconductor Manufacturing Company (TSM) is one of the most dominant players in the semiconductor industry, and its stock has been on a tear lately. But even after its impressive run, there are still plenty of reasons to believe that TSM is a must-buy for long-term investors. Here are three key reasons why:

First and foremost, TSM has an unbeatable position in the industry. As the largest independent pure-play foundry, it has a unique ability to produce chips for a wide range of customers, from Apple to Amazon to Google. This diversification has allowed TSM to weather the ups and downs of the industry, and its revenue has consistently grown over the years.

Secondly, TSM is at the forefront of the shift towards 5G and artificial intelligence (AI). As these technologies continue to shape the future of computing, TSM is well-positioned to benefit from the increased demand for high-performance chips. Its cutting-edge manufacturing capabilities and innovative technologies, such as its 3-nanometer process, make it an attractive partner for companies looking to develop next-generation products.

Finally, TSM has a strong track record of delivering profits and returning value to shareholders. With a history of consistent dividend payments and share buybacks, TSM has demonstrated its commitment to rewarding investors. And with its current dividend yield of around 2.5%, it's an attractive option for income-seeking investors.

In conclusion, TSM's dominant position in the industry, its leadership in 5G and AI, and its commitment to delivering profits and returns to shareholders make it a must-buy for long-term investors. With its strong fundamentals and growth potential, TSM is an excellent addition to any portfolio.