Taiwan Semiconductor Manufacturing Company Limited (TSM) Return on Invested Capital (ROIC): 25.10%
Is Taiwan Semiconductor Manufacturing Company Limited’s return on invested capital (ROIC) high or low?
Taiwan Semiconductor Manufacturing Company Limited's return on invested capital (ROIC) of 25.10% is 18% above its 5-year average of 21.33%, near the high end of its 5-year range (17.41%–25.10%).
The return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 25.10% as of Wednesday, June 10, 2026. It is above its 12-month average by 11.31% (22.55%).
TSM Return on Invested Capital (ROIC) Chart
TSM Average Return on Invested Capital (ROIC) Chart
TSM Current vs Average Return on Invested Capital (ROIC) Chart
TSM Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
25.10%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
22.55%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
21.72%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
21.33%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
20.32%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
20.09%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
19.95%
CURRENT VS TTM AVG
+11.31%
CURRENT VS 3Y AVG
+15.59%
CURRENT VS 5Y AVG
+17.66%
CURRENT VS 10Y AVG
+23.53%
CURRENT VS 15Y AVG
+24.92%
CURRENT VS 20Y AVG
+25.81%
TSM Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Taiwan Semiconductor Manufacturing Company Limited (TSM) | — | 25.10% | 22.55% | 21.72% | 21.33% |
| Broadcom Inc. (AVGO) | $1.78T | 16.36% | 10.96% | 14.82% | 15.27% |
| Microsoft Corporation (MSFT) | $2.98T | 21.63% | 21.95% | 23.20% | 22.53% |
| Micron Technology, Inc. (MU) | $1.01T | 12.12% | 6.74% | 4.71% | 5.96% |
| Advanced Micro Devices, Inc. (AMD) | $739.38B | 5.40% | 3.95% | 2.65% | 9.51% |
| Oracle Corporation (ORCL) | $586.87B | 10.86% | 11.07% | 10.74% | 11.30% |
| Intel Corporation (INTC) | $536.12B | 0.00% | -3.55% | -1.38% | 1.34% |
| Cisco Systems, Inc. (CSCO) | $470.05B | 11.66% | 11.23% | 13.98% | 13.96% |
| Lam Research Corporation (LRCX) | $400.88B | 34.00% | 29.55% | 30.13% | 32.11% |
| Applied Materials, Inc. (AMAT) | $396.67B | 21.96% | 23.89% | 27.74% | 28.32% |
Capital Efficiency
ROIC
25.1%
ROE
34.0%
Taiwan Semiconductor Manufacturing Company Limited Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Taiwan Semiconductor Manufacturing Company Limited Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The return on invested capital (ROIC) for TSM stock is 25.10%.
- Is Taiwan Semiconductor Manufacturing Company Limited's return on invested capital (ROIC) high or low?
- Taiwan Semiconductor Manufacturing Company Limited's return on invested capital (ROIC) of 25.10% is 18% above its 5-year average of 21.33%, near the high end of its 5-year range (17.41%–25.10%).
- What is the TTM average return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The TTM average return on invested capital (ROIC) for TSM stock is 22.55%.
- What is the 3Y average return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The 3Y average return on invested capital (ROIC) for TSM stock is 21.72%.
- What is the 5Y average return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The 5Y average return on invested capital (ROIC) for TSM stock is 21.33%.
- What is the 10Y average return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The 10Y average return on invested capital (ROIC) for TSM stock is 20.32%.
- What is the 15Y average return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The 15Y average return on invested capital (ROIC) for TSM stock is 20.09%.
- What is the 20Y average return on invested capital (ROIC) for Taiwan Semiconductor Manufacturing Company Limited (TSM)?
- The 20Y average return on invested capital (ROIC) for TSM stock is 19.95%.
Taiwan Semiconductor Manufacturing Company Limited Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2025-12-31 | 25.10% |
| 2024-12-31 | 20.00% |
| 2023-12-31 | 17.41% |
| 2022-12-31 | 24.35% |
| 2021-12-31 | 18.83% |
| 2020-12-31 | 22.31% |
| 2019-12-31 | 18.63% |
| 2018-12-31 | 18.87% |
| 2017-12-31 | 19.44% |
| 2016-12-31 | 19.89% |
| 2015-12-31 | 18.68% |
| 2014-12-31 | 19.06% |
| 2013-12-31 | 16.64% |
| 2012-12-31 | 18.95% |
| 2011-12-31 | 19.14% |
| 2010-12-31 | 24.19% |
| 2009-12-31 | 16.69% |
| 2008-12-31 | 18.39% |
| 2007-12-31 | 19.11% |
| 2006-12-31 | 24.65% |
| 2005-12-31 | 18.64% |
| 2004-12-31 | 19.82% |
| 2003-12-31 | 12.33% |
| 2002-12-31 | 7.14% |
| 2001-12-31 | 2.24% |
| 2000-12-31 | 18.72% |
| 1999-12-31 | 10.40% |
| 1998-12-31 | 10.44% |
| 1997-12-31 | 13.63% |
Related Metrics
About Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited (TSMC), along with its affiliated entities, operates globally in the semiconductor industry, specializing in the manufacturing, packaging, meticulous testing, and worldwide distribution of integrated circuits and other crucial semiconductor components. Its expansive international presence covers key markets such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company is renowned for its diverse array of wafer fabrication processes. These capabilities enable the production of various advanced semiconductor types, including complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal devices, radio frequency components, embedded memory, and bipolar CMOS mixed-signal circuits. Beyond its core foundry services, TSMC extends its offerings to include dedicated customer and engineering support. It also undertakes the production of specialized masks, actively invests in burgeoning technology startups, and manages the entire lifecycle—from research and development through to manufacturing, packaging, testing, and sales—of color filters. Furthermore, the company provides a range of investment services. TSMC's cutting-edge products are indispensable across numerous sectors, powering high-performance computing, modern smartphones, Internet of Things (IoT) ecosystems, sophisticated automotive systems, and a broad spectrum of digital consumer electronics. Established in 1987, the enterprise is officially headquartered in Hsinchu City, Taiwan.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- C. C. Wei