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extesy | 1 year ago

TSMC margins are over 30% and growing [1] - that's very far from "low".

[1] https://www.macrotrends.net/stocks/charts/TSM/taiwan-semicon...

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alephnerd|1 year ago

30% net due to a near monopoly and a recent upswing due to Nvidia.

Almost every other foundry system died because of low net margins.

Software (and fabless hardware like chip design) is expected to have 60-70% gross margins or the ability to reach that.

Semiconductors is part of TMT just like Software or Telecom, and this has an impact on available liquidity.

This is why TSMC is heavily subsidized by the Taiwanese government.

extesy|1 year ago

TSMC is neither software nor fabless. I'm not sure we are talking about the same company, there seems to be some disconnect here. For hardware business 30% margins are high, Apple is one of the most famous exceptions.