TSMBULLISH

Gross Margin

66.2%

Higher than 53% of Technology sector peers

Updated 24h ago

Sector Performance

53th percentile

TSM

66.2%

Sector Median

65.3%

Sector Avg

60.9%

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Deep Analysis

Taiwan Semiconductor Manufacturing Company’s gross margin of 66.2% means that for every dollar of revenue, the company keeps $0.662 after covering the direct costs of manufacturing its chips.

This metric sits above the sector median of 63.0%, placing TSM in the 55th percentile among technology peers—slightly better than half the industry but not a standout. Year-over-year and quarter-over-quarter changes are not available, and the trend over the last eight quarters is also not reported, so no direction can be inferred from the single data point provided. The combination of a moderately above-median gross margin with no trend history suggests limited immediate risk from margin erosion, but also no clear signal of improving efficiency. This metric supports the overall BULLISH verdict because a gross margin above the sector median indicates solid cost control and pricing power, which are favorable for profitability.

Frequently Asked Questions

What does the Gross Margin tell investors about TSM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does TSM's Gross Margin compare to its sector?

TSM's Gross Margin of 66.2% compares to a Technology sector median of 65.3%, placing it in the 53th percentile.

Who are TSM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%), GRAB (43.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.