Report on Taiwan Semiconductor Manufacturing (TSM) and Alignment with Sustainable Development Goals

This report analyzes the recent financial performance and market standing of Taiwan Semiconductor Manufacturing Company Ltd. (TSM), with a specific focus on its contributions to the United Nations Sustainable Development Goals (SDGs).

Investor Confidence and Economic Impact (SDG 8 & SDG 17)

Recent filings indicate strong institutional investor confidence in TSM, reflecting the company’s vital role in promoting sustained, inclusive, and sustainable economic growth (SDG 8: Decent Work and Economic Growth). This influx of international capital also highlights the importance of global partnerships for sustainable development (SDG 17: Partnerships for the Goals).

Key Institutional Investment Changes

• Aviso Wealth Management: Increased its position by 50.7%, holding 7,646 shares valued at $1,269,000.
• City Holding Co.: Raised its stake by 238.0%.
• Glass Jacobson Investment Advisors llc: Boosted its holdings by 289.4%.
• Signature Resources Capital Management LLC: Increased its holdings by 138.8%.
• New positions were also acquired by Accredited Wealth Management LLC and Graybill Wealth Management LTD.

Overall, institutional investors own 16.51% of the company’s stock, signifying broad-based support for TSM’s long-term strategy and its impact on the global economy.

Market Performance and Analyst Outlook

TSM’s market performance and positive analyst ratings underscore its financial health and its foundational role in building resilient infrastructure and fostering innovation (SDG 9: Industry, Innovation, and Infrastructure).

Financial Health Indicators

• Stock Price (as of reporting date): Opened at $235.28.
• 52-Week Range: $133.57 – $248.28.
• Market Capitalization: $1.22 trillion.
• Financial Ratios: The company maintains a healthy debt-to-equity ratio of 0.18, a quick ratio of 2.18, and a current ratio of 2.37.

Quarterly Earnings and Revenue

In its last quarterly report, TSM exceeded analyst expectations:

• Earnings Per Share (EPS): Reported $2.47, surpassing the consensus estimate of $2.13.
• Revenue: Achieved $30.07 billion, compared to the consensus estimate of $28.50 billion.
• Year-over-Year Growth: Revenue increased by 44.4%, a significant indicator of its contribution to economic growth (SDG 8).

Analyst Consensus

Market analysts have issued strong endorsements for TSM, reinforcing its position as a leader in an industry critical to achieving SDG 9.

1. Needham & Company LLC: Reissued a “buy” rating with a $270.00 price objective.
2. Barclays: Reissued an “overweight” rating, increasing its price objective to $240.00.
3. Susquehanna: Gave a “positive” rating with a target price of $265.00.
4. Citigroup: Restated a “buy” rating.

The consensus rating for TSM is “Moderate Buy,” with an average target price of $258.33.

Corporate Profile and Contribution to Sustainable Innovation

Core Operations and SDG 9

Taiwan Semiconductor Manufacturing Company Limited is a global leader in the manufacture, packaging, testing, and sale of integrated circuits. Its core business is fundamentally aligned with SDG 9: Industry, Innovation, and Infrastructure. By providing the essential semiconductor components for a vast range of technologies, TSM enables innovation across all sectors, from communications and computing to healthcare and energy.

Commitment to Stakeholders and Responsible Growth (SDG 8 & SDG 12)

The company’s declaration of a quarterly dividend ($0.6499 per share) demonstrates a commitment to sharing its economic success with shareholders, a principle that supports broad-based economic prosperity under SDG 8. As a market leader, TSM’s continued growth and profitability are intrinsically linked to its ability to manage resources efficiently and promote sustainable industrialization, reflecting the principles of SDG 12: Responsible Consumption and Production.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

Analysis

• The provided article is a financial news report. Its content is exclusively focused on the stock market performance of Taiwan Semiconductor Manufacturing Company Ltd. (TSM).
• The text discusses changes in stock ownership by institutional investors, analyst ratings, stock price performance, and financial metrics like revenue, earnings per share (EPS), and dividend payouts.
• There is no information or discussion related to environmental sustainability, social responsibility, economic inclusion, governance practices, or any other theme central to the Sustainable Development Goals (SDGs). The company’s business is described, but its operational impact on sustainability is not mentioned.

Conclusion

• Based on a thorough analysis of the text, there are no Sustainable Development Goals (SDGs) addressed or connected to the issues highlighted in the article.

2. What specific targets under those SDGs can be identified based on the article’s content?

Analysis

• SDG targets are specific, measurable objectives under each of the 17 goals. For example, Target 9.4 aims to upgrade infrastructure and retrofit industries to make them sustainable.
• Since the article does not address any SDGs, it subsequently does not contain any information that could be linked to specific SDG targets. The content is financial and does not touch upon topics like sustainable infrastructure, resource efficiency, clean technology, or decent work.

Conclusion

• No specific SDG targets can be identified from the article’s content.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Analysis

• SDG indicators are used to measure progress towards the targets. For instance, Indicator 9.4.1 is “CO2 emission per unit of value added.”
• The article contains numerous financial indicators, such as stock price ($235.28), P/E ratio (26.83), revenue growth (44.4%), and dividend yield (1.1%).
• These metrics are used to assess the financial performance and valuation of a company for investment purposes. They are not the official indicators used to track progress on the social, environmental, and economic dimensions of the SDGs.

Conclusion

• There are no SDG indicators mentioned or implied in the article. The indicators present are purely financial and unrelated to the SDG framework.

4. Table of Findings

Source: marketbeat.com