Why do investors love TSMC more than Samsung
On December 11, Bloomberg reported that, compared with Samsung, investors' preference for TSMC is simple, that is, TSMC's dividends for investors are better and more reliable.
The latest data shows that the market value of TSMC has reached US $ 282.745 billion, surpassing Samsung as the most valuable company in Asia. Bloomberg pointed out that in the past four years, TSMC has maintained an annual dividend distribution rate of 50% to 60%, which is about three times that of Samsung.
CW Chung, head of Pan Asia's technology division at Nomura Securities in Korea, pointed out that TSMC's business is showing steady growth and that investors have never been disappointed in shareholder compensation in recent years. Therefore, TSMC has become a stock that Asian investors must hold.
Samsung originally planned to announce a new three-year shareholder compensation policy in July this year, but it was delayed until next year due to external uncertainties and it is difficult to predict free cash flow.
In addition to the dividend advantage that Bloomberg said, TSMC's performance in the process is also slightly better. At present, TSMC's 7nm production capacity has been in short supply, but Samsung's production capacity has not been tight. TSMC's 5nm will debut next year, and it will be supported by Apple and Huawei. In addition, the results of the trial production of TSMC's 5nm process show that the number of transistors is 1.8 times that of 7nm, while Samsung has only increased by 20%, and TSMC's power consumption and other chip performance have exceeded the competition.
The latest data shows that the market value of TSMC has reached US $ 282.745 billion, surpassing Samsung as the most valuable company in Asia. Bloomberg pointed out that in the past four years, TSMC has maintained an annual dividend distribution rate of 50% to 60%, which is about three times that of Samsung.
CW Chung, head of Pan Asia's technology division at Nomura Securities in Korea, pointed out that TSMC's business is showing steady growth and that investors have never been disappointed in shareholder compensation in recent years. Therefore, TSMC has become a stock that Asian investors must hold.
Samsung originally planned to announce a new three-year shareholder compensation policy in July this year, but it was delayed until next year due to external uncertainties and it is difficult to predict free cash flow.
In addition to the dividend advantage that Bloomberg said, TSMC's performance in the process is also slightly better. At present, TSMC's 7nm production capacity has been in short supply, but Samsung's production capacity has not been tight. TSMC's 5nm will debut next year, and it will be supported by Apple and Huawei. In addition, the results of the trial production of TSMC's 5nm process show that the number of transistors is 1.8 times that of 7nm, while Samsung has only increased by 20%, and TSMC's power consumption and other chip performance have exceeded the competition.