- Geopolitical risk has kept TSMC’s valuation down, argues the manager
- But its products are crucial to most areas of technology
Sat Duhra, portfolio manager at Henderson Far East Income (HFEL), explains why the trust invests in Taiwan Semiconductor Manufacturing Company, or TSMC (TW:2330):
The largest company in Asia isn’t a global household name. It doesn’t even design or manufacture anything under its own name, and its long-term success has in fact been underpinned by its ability to shrink its products. But TSMC has established decades of strong earnings and dividend growth, has exposure to the most compelling technology themes out there, and has become the most critical supplier of components for the global tech giants – it is no wonder that it’s so highly regarded in our region.