Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing ROCE

The Return on Capital Employed (ROCE) of Taiwan Semiconductor Manufacturing (TSM) as of Oct 31, 2026 is 36.24 %. In the previous year, Return on Capital Employed (ROCE) was 30.58 % — a change of 18.52% (higher).

ROCE

36.24 %

YoY

18.52%

Last updated:

In 2025, Taiwan Semiconductor Manufacturing's return on capital employed (ROCE) was 36.24 %, a 18.52% increase from the 30.58 % ROCE in the previous year.

The Taiwan Semiconductor Manufacturing ROCE history

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ROCE
Date
ROCE
Jan 1, 2018
23.09 USD
Jan 1, 2019
22.98 USD
Jan 1, 2020
30.63 USD
Jan 1, 2021
29.94 USD
Jan 1, 2022
37.87 USD
Jan 1, 2023
26.45 USD
Jan 1, 2024
30.58 USD
Jan 1, 2025
36.24 USD
The Taiwan Semiconductor Manufacturing ROCE history
YEARROCEYoY
36.24 %+18.52%
30.58 %+15.59%
26.45 %-30.15%
37.87 %+26.49%
29.94 %-2.23%
30.63 %+33.30%
22.98 %-0.51%
23.09 %-10.48%
25.80 %-7.18%
27.79 %+3.78%
26.78 %-7.45%
28.94 %—

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Taiwan Semiconductor Manufacturing Stock analysis

What does Taiwan Semiconductor Manufacturing do? Taiwan Semiconductor Manufacturing Company Limited generates revenue through manufacturing, packaging, testing, and selling integrated circuits and semiconductor devices globally. Its wafer fabrication processes include CMOS logic, mixed-signal, radio frequency, embedded memory, and bipolar CMOS mixed-signal technologies. The company serves high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics sectors with its products. Customer and engineering support services, mask manufacturing, and technology start-up investments also contribute to its income streams. The business provides complementary services such as research, designing, developing, manufacturing, packaging, testing, and sale of color filters alongside semiconductor production. Investment activities in technology start-up companies form another revenue source. Taiwan Semiconductor Manufacturing Company Limited operates across multiple regions including Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States, targeting diverse industry segments through its comprehensive product portfolio. Its core offerings are integrated circuits and semiconductor devices fabricated using advanced processes like CMOS logic and radio frequency solutions. The company's product applications span high performance computing, smartphones, IoT, automotive, and digital consumer electronics markets. Additional revenue comes from mask manufacturing and color filter sales, supporting both its primary semiconductor business and specialized technology investments. Taiwan Semiconductor Manufacturing is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling Taiwan Semiconductor Manufacturing's Return on Capital Employed (ROCE)

Taiwan Semiconductor Manufacturing's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing Taiwan Semiconductor Manufacturing's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

Taiwan Semiconductor Manufacturing's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in Taiwan Semiconductor Manufacturing’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about Taiwan Semiconductor Manufacturing stock

Return on Capital Employed (ROCE) of Taiwan Semiconductor Manufacturing is 36.24 % in 2025.

Return on Capital Employed (ROCE) of Taiwan Semiconductor Manufacturing changed from 30.58 % to 36.24 %, representing a 18.52% change. The value is higher than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) Taiwan Semiconductor Manufacturing since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s Taiwan Semiconductor Manufacturing with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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Profitability — Taiwan Semiconductor Manufacturing

All Key Metrics — Taiwan Semiconductor Manufacturing