In the fast-evolving semiconductor industry, Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS) stand out with distinct yet overlapping market roles. TSM leads in wafer fabrication for high-performance computing and consumer electronics, while Cirrus Logic specializes in mixed-signal processing solutions and audio technologies. This comparison will reveal which company offers the most compelling investment potential in 2026, guiding you toward a smarter portfolio choice.
Table of contents
Companies Overview
I will begin the comparison between Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS) by providing an overview of these two companies and their main differences.
Taiwan Semiconductor Manufacturing Company Limited Overview
TSM is a leading semiconductor manufacturer headquartered in Hsinchu City, Taiwan. Founded in 1987, the company specializes in wafer fabrication processes for integrated circuits and semiconductor devices. Its products serve various markets, including high-performance computing, smartphones, automotive, and digital consumer electronics. TSM operates globally, offering manufacturing, packaging, testing, and engineering support services.
Cirrus Logic, Inc. Overview
CRUS is a fabless semiconductor company based in Austin, Texas, founded in 1984. It focuses on low-power, high-precision mixed-signal processing solutions, including audio codecs, amplifiers, and digital signal processors. CRUS’s products target portable devices like smartphones and tablets, as well as industrial applications such as energy control and power conversion. The company markets its products through direct sales, representatives, and distributors internationally.
Key similarities and differences
Both TSM and CRUS operate in the semiconductor sector but with distinct business models. TSM is a pure-play manufacturer providing wafer fabrication and packaging services, while CRUS is fabless, designing and marketing mixed-signal IC solutions without owning fabrication facilities. Both serve global markets, yet TSM’s scale is significantly larger, with a market cap over 1.6T USD compared to CRUS’s 6.3B USD, reflecting their different roles within the semiconductor value chain.
Income Statement Comparison
This table provides a side-by-side comparison of key income statement metrics for Taiwan Semiconductor Manufacturing Company Limited and Cirrus Logic, Inc. for their most recent fiscal years.
| Metric | Taiwan Semiconductor Manufacturing Company Limited | Cirrus Logic, Inc. |
|---|---|---|
| Market Cap | 1.70T TWD | 6.35B USD |
| Revenue | 2.89T TWD | 1.90B USD |
| EBITDA | 1.98T TWD | 497M USD |
| EBIT | 1.32T TWD | 445M USD |
| Net Income | 1.16T TWD | 332M USD |
| EPS | 223.4 TWD | 6.24 USD |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited (TSM) has exhibited strong revenue growth, increasing 116.11% from 2020 to 2024, with net income rising 126.8% over the same period. Margins have remained stable, with a gross margin of 56.12% and a net margin of 40.02% in 2024. The most recent year saw a robust 33.89% revenue growth and a slight net margin improvement, indicating sustained profitability and operational efficiency.
Cirrus Logic, Inc.
Cirrus Logic, Inc. (CRUS) reported a 38.48% revenue increase from 2021 to 2025, alongside a 52.53% growth in net income. Margins improved modestly, with a gross margin of 52.53% and net margin of 17.48% in 2025. The latest fiscal year showed a 5.99% revenue growth and a 13.91% rise in net margin, reflecting steady earnings expansion despite slower top-line growth compared to prior years.
Which one has the stronger fundamentals?
TSM demonstrates stronger fundamentals with higher revenue and net income growth rates, superior margins, and consistent operational efficiency. CRUS also shows favorable growth and margin improvements but at lower absolute levels and slower revenue expansion recently. Both companies have favorable income statement evaluations, yet TSM’s scale and margin robustness suggest a more dominant financial position.
Financial Ratios Comparison
Below is a comparative overview of key financial ratios for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS) based on the most recent fiscal data available.
| Ratios | Taiwan Semiconductor Manufacturing Company Limited (TSM) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 27.3% | 17.0% |
| ROIC | 20.0% | 14.2% |
| P/E | 29.0 | 15.9 |
| P/B | 7.92 | 2.71 |
| Current Ratio | 2.36 | 6.35 |
| Quick Ratio | 2.14 | 4.82 |
| D/E (Debt-to-Equity) | 0.25 | 0.07 |
| Debt-to-Assets | 15.6% | 6.18% |
| Interest Coverage | 126 | 457 |
| Asset Turnover | 0.43 | 0.81 |
| Fixed Asset Turnover | 0.88 | 6.62 |
| Payout Ratio | 31.3% | 0% |
| Dividend Yield | 1.08% | 0% |
Interpretation of the Ratios
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor shows a strong financial profile with favorable net margin at 40.02%, ROE at 27.29%, and ROIC at 20%, indicating efficient profitability and capital use. However, valuation multiples like PE (29.04) and PB (7.92) are unfavorable, suggesting a relatively high market price. The company pays dividends with a neutral yield of 1.08%, implying moderate shareholder returns without excessive payout risks.
Cirrus Logic, Inc.
Cirrus Logic demonstrates favorable profitability ratios, including a net margin of 17.48% and ROE of 17.01%, alongside low debt levels. The current ratio is unusually high at 6.35, flagged as unfavorable, possibly indicating inefficient asset use. It does not pay dividends, focusing on reinvestment and R&D, consistent with its growth and innovation strategy, supported by strong free cash flow coverage.
Which one has the best ratios?
Both companies have a similar proportion of favorable ratios (57.14%), but Taiwan Semiconductor’s stronger profitability and capital efficiency contrast with its higher valuation multiples and some weaker turnover ratios. Cirrus Logic’s low valuation and strong liquidity come with concerns over asset utilization and lack of dividend income. Overall, each exhibits distinct strengths and potential concerns in their ratio profiles.
Strategic Positioning
This section compares the strategic positioning of Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS), including Market position, Key segments, and Exposure to technological disruption:
TSM
- Leading global semiconductor foundry facing intense competition in wafer fabrication.
- Key segments include wafer fabrication and other semiconductor products; diverse drivers.
- Invests in technology startups; involved in manufacturing and engineering support services.
CRUS
- Fabless semiconductor player in mixed-signal audio and industrial applications markets.
- Focused on portable audio and high-performance mixed-signal products, with industrial exposure.
- Exposed to disruption through innovation in audio and energy management ICs and SoundClear tech.
TSM vs CRUS Positioning
TSM has a diversified semiconductor manufacturing business with global scale, whereas CRUS concentrates on niche mixed-signal and audio markets. TSM benefits from broad market reach but faces high competitive pressure; CRUS leverages specialized innovation with narrower scope.
Which has the best competitive advantage?
CRUS shows a very favorable moat with growing ROIC, indicating durable profitability. TSM also creates value but faces a declining ROIC trend, suggesting a slightly favorable competitive advantage overall.
Stock Comparison
The stock price movements over the past year reveal significant gains for Taiwan Semiconductor Manufacturing Company Limited (TSM), contrasted with more moderate appreciation and recent decline in Cirrus Logic, Inc. (CRUS), highlighting distinct trading dynamics.
Trend Analysis
Taiwan Semiconductor Manufacturing Company Limited (TSM) experienced a strong bullish trend over the past 12 months with a 152.54% price increase, showing acceleration and high volatility (std deviation 51.25), peaking at 327.11.
Cirrus Logic, Inc. (CRUS) also posted a bullish trend with a 35.25% gain over the same period but showed deceleration and lower volatility (std deviation 14.47), with a recent negative price change of -6.23% signaling short-term bearishness.
Comparatively, TSM delivered the highest market performance with a notably stronger upward trajectory and acceleration, outperforming CRUS’s more moderate and recently declining trend.
Target Prices
The target price consensus for Taiwan Semiconductor Manufacturing Company Limited and Cirrus Logic, Inc. reflects positive analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Taiwan Semiconductor Manufacturing Company Limited | 400 | 330 | 361.25 |
| Cirrus Logic, Inc. | 155 | 95 | 137.5 |
Analysts expect TSM’s price to rise modestly above its current 327.11 USD, while CRUS shows potential upside from 124.38 USD consensus, signaling moderate growth prospects.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS):
Rating Comparison
TSM Rating
- Rating: A- with a very favorable status.
- Discounted Cash Flow Score: 5, indicating very favorable valuation based on future cash flow.
- ROE Score: 5, very favorable for efficient profit generation from shareholders’ equity.
- ROA Score: 5, very favorable for effective asset utilization.
- Debt To Equity Score: 3, moderate, reflecting balanced financial risk.
- Overall Score: 4, favorable overall financial standing.
CRUS Rating
- Rating: A- with a very favorable status.
- Discounted Cash Flow Score: 4, showing favorable valuation but lower than TSM’s score.
- ROE Score: 4, favorable but below TSM’s efficiency in generating profit from equity.
- ROA Score: 5, very favorable and equal to TSM’s effective asset utilization.
- Debt To Equity Score: 3, moderate, equal to TSM’s financial risk level.
- Overall Score: 4, favorable overall financial standing, matching TSM’s score.
Which one is the best rated?
Both TSM and CRUS share an identical overall rating of A- and an overall score of 4, reflecting favorable financial standing. TSM leads slightly in discounted cash flow and ROE scores, while both match on ROA and debt-to-equity scores.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
TSM Scores
- Altman Z-Score: 2.94, in the grey zone indicating moderate bankruptcy risk.
- Piotroski Score: 8, classified as very strong financial health.
CRUS Scores
- Altman Z-Score: 11.57, in the safe zone indicating low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
Which company has the best scores?
CRUS has a significantly higher Altman Z-Score, placing it firmly in the safe zone compared to TSM’s grey zone. However, TSM has a higher Piotroski Score, indicating marginally stronger financial health in that measure.
Grades Comparison
The following tables present a summary of recent grades assigned to Taiwan Semiconductor Manufacturing Company Limited and Cirrus Logic, Inc.:
Taiwan Semiconductor Manufacturing Company Limited Grades
This table shows recent grades and actions from established grading companies for TSM:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Bernstein | Maintain | Outperform | 2025-12-08 |
| Needham | Maintain | Buy | 2025-10-27 |
| Barclays | Maintain | Overweight | 2025-10-17 |
| Needham | Maintain | Buy | 2025-10-16 |
| Susquehanna | Maintain | Positive | 2025-10-10 |
| Barclays | Maintain | Overweight | 2025-10-09 |
| Barclays | Maintain | Overweight | 2025-09-16 |
| Needham | Maintain | Buy | 2025-07-17 |
| Susquehanna | Maintain | Positive | 2025-07-14 |
| Needham | Maintain | Buy | 2025-07-01 |
Overall, TSM’s grades consistently indicate a positive outlook, with multiple “Buy,” “Outperform,” and “Overweight” ratings maintained throughout the last year.
Cirrus Logic, Inc. Grades
This table presents recent grades and actions from recognized grading companies for CRUS:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
CRUS has a mix of “Buy,” “Overweight,” and “Equal Weight” ratings with consistent maintenance of these grades, reflecting a stable but somewhat less uniformly positive consensus compared to TSM.
Which company has the best grades?
Taiwan Semiconductor Manufacturing Company Limited generally holds stronger and more consistent positive grades such as “Outperform” and multiple “Buy” ratings, while Cirrus Logic, Inc. shows a mix including several “Equal Weight” ratings. This suggests TSM may be viewed more favorably by analysts, potentially impacting investor confidence and portfolio decisions accordingly.
Strengths and Weaknesses
Below is a comparative table outlining the key strengths and weaknesses of Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS) based on the most recent data available.
| Criterion | Taiwan Semiconductor Manufacturing Company Limited (TSM) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Diversification | Primarily focused on wafer production with growing “Other Products” segment; moderate diversification in semiconductor manufacturing | Focused on audio and mixed signal products, with a strong presence in portable audio but limited diversification |
| Profitability | High net margin (40.02%) and ROIC (20.0%), creating value though ROIC shows a declining trend | Good profitability with positive ROIC (14.2%) and growing trend, net margin at 17.48% |
| Innovation | Strong innovation capacity as a leading semiconductor foundry with high fixed asset turnover challenges | Demonstrates innovation in mixed signal and portable audio markets; high fixed asset turnover ratio (6.62) indicates efficient asset use |
| Global presence | Extensive global footprint as the largest contract chip manufacturer worldwide | More niche, focused on audio solutions, with less global scale compared to TSM |
| Market Share | Market leader in semiconductor foundry services with dominant wafer sales (~1.99T TWD in 2022) | Niche player in audio ICs with steady revenue growth (~1.14B USD in portable audio products in 2025) |
Key takeaways: TSM excels in profitability and global market leadership but faces a slight decline in ROIC, signaling caution. CRUS shows durable competitive advantage with growing profitability and efficient asset use, though it operates in a narrower market segment. Investors should weigh TSM’s scale and profitability against CRUS’s innovation and growth trajectory.
Risk Analysis
Below is a comparative table of key risks for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Cirrus Logic, Inc. (CRUS) based on the most recent data from 2025-2026:
| Metric | Taiwan Semiconductor Manufacturing Company Limited (TSM) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Market Risk | Beta 1.274 indicating higher volatility vs. market | Beta 1.084 indicating moderate volatility |
| Debt Level | Low debt-to-equity ratio 0.25, favorable debt coverage | Very low debt-to-equity ratio 0.07, strong balance sheet |
| Regulatory Risk | Exposure to Taiwan-China geopolitical tensions | Subject to US semiconductor export controls and regulations |
| Operational Risk | Large-scale manufacturing complexity, supply chain dependency | Fabless model reduces CAPEX risk but relies on foundries |
| Environmental Risk | Moderate, with growing focus on sustainability | Lower direct environmental footprint, but supply chain impact |
| Geopolitical Risk | High due to Taiwan’s geopolitical status | Moderate, influenced by US-China trade policies |
The most impactful risks are geopolitical tensions affecting TSM, given Taiwan’s strategic position, and regulatory risks for CRUS related to US export controls. Both companies maintain strong balance sheets with low debt, reducing financial risk. Investors should monitor geopolitical developments closely as they could significantly disrupt operations and market performance.
Which Stock to Choose?
Taiwan Semiconductor Manufacturing Company Limited (TSM) shows strong income growth with a 33.89% revenue increase in one year and a 116.11% rise over five years. Its financial ratios are mostly favorable, including a high net margin (40.02%) and ROE (27.29%), supported by low debt and a very favorable rating of A-. The company creates value with a slightly favorable moat despite a declining ROIC trend.
Cirrus Logic, Inc. (CRUS) demonstrates moderate income growth, with a 5.99% revenue increase in one year and 38.48% over the period. Its financial ratios are favorable overall, including a net margin of 17.48% and ROE of 17.01%, with very low debt and an A- rating. It exhibits a very favorable moat with growing ROIC, signaling durable profitability.
For investors focused on stable and robust income growth with a strong profitability profile, TSM might appear more suitable, while those prioritizing a durable competitive advantage with growing returns on invested capital could find CRUS more attractive. Risk-averse investors may value CRUS’s lower leverage and very favorable moat, whereas risk-tolerant investors might be drawn to TSM’s higher margins and earnings growth.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Taiwan Semiconductor Manufacturing Company Limited and Cirrus Logic, Inc. to enhance your investment decisions:
