AI-generated · cited to primary sources · not investment advice
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Jun 2025 Filing Analysis
How durable is the business?
TSMC continues to demonstrate high financial defensibility by successfully issuing new unsecured bonds totaling NT$14.1 billion in June 2025. The interest rates for these 5-year and 10-year bonds (1.92% and 2.05%) remain low, though they have ticked up slightly from the previously noted 1.72%-1.78% range, reflecting the company's ongoing ability to access cheap capital for its massive manufacturing requirements. (4 stable, 1 expanding)
“The unsecured bonds issued by TSMC and its subsidiaries... Tranche A: NT$12.5 billion 1.92%; Tranche B: NT$1.6 billion 2.05%”
See the full cited Business Model analysis of Taiwan Semiconductor Manufacturing Company Ltd.
What could break the thesis?
The risk is easing as the net acquisition of fixed-income assets in June 2025 (NT$5.3 billion net) is significantly lower than the previously reported NT$23.2 billion, suggesting a slowdown in cash lock-up for non-core investments. (1 easing, 1 insufficient_data, 1 stable)
“Fixed-income investment: NT$5.6 billion of acquisition and NT$0.3 billion of disposition.”
See the full cited Risk analysis of Taiwan Semiconductor Manufacturing Company Ltd.
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