🏰TSMC Deep Dive: The Invisible Engine of AI

Owning the factory behind the world’s AI and technology revolution.

Hi partner 👋

I’ve taken a deep dive into one of the most impressive compounding machines in the middle of the AI/Semiconductor industry to better understand the business.

What did I learn?

TSMC is one of the most impressive compounders I’ve ever researched.

The business has returned +1283.4% for shareholders in the last 10 years, that’s a 28.8% CAGR.

The business leverages scale economics to lower costs, which allows the business to grow rapidly and expand its margins.

The business also has pricing power. This is incredibly rare for a manufacturing business and very important to the investment case.

In the last 5 years, growth has been incredible, but the best part is that margins and return on invested capital have expanded, showcasing the strong moat and unique value proposition TSMC has.

Let’s dive into it 👇