In the fast-evolving semiconductor industry, Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) stand out as key players with distinct approaches. TSM dominates global wafer fabrication, while INDI focuses on innovative automotive semiconductor solutions. Their market overlap and differing innovation strategies make this comparison particularly relevant. Join me as we explore which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) 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. Its mission revolves around producing integrated circuits and other semiconductor devices for global markets, including high performance computing, smartphones, IoT, automotive, and digital consumer electronics. Established in 1987, TSMC offers a broad range of wafer fabrication processes and invests in technology startups to maintain its market leadership.
indie Semiconductor, Inc. Overview
INDI is a U.S.-based technology firm specializing in automotive semiconductors and software solutions. Founded in 2007 and headquartered in Aliso Viejo, California, the company focuses on advanced driver assistance systems, connected car applications, electrification, and user experience enhancements. Its products include devices for parking assistance, wireless charging, infotainment, and photonic components for optical sensing and communication markets.
Key similarities and differences
Both TSM and INDI operate in the semiconductor industry but serve distinct market segments. TSM is a large-scale manufacturer with a wide product portfolio and a global footprint, emphasizing wafer fabrication and integrated circuits. INDI, by contrast, concentrates on niche automotive semiconductor solutions and software, targeting specific applications like driver assistance and connectivity. Their business models differ primarily in scale, scope, and end-market focus.
Income Statement Comparison
The table below compares key income statement metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) for the fiscal year 2024.
| Metric | Taiwan Semiconductor Manufacturing Company Limited (TSM) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| Market Cap | 1.70T TWD | 861M USD |
| Revenue | 2.89T TWD | 217M USD |
| EBITDA | 1.98T TWD | -94M USD |
| EBIT | 1.32T TWD | -137M USD |
| Net Income | 1.16T TWD | -133M USD |
| EPS | 223.4 TWD | -0.76 USD |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor (TSM) demonstrated strong revenue growth from 2020 to 2024, rising from 1.34T to 2.89T TWD. Net income more than doubled, reaching 1.16T TWD in 2024. Margins remained robust, with a gross margin over 56% and a net margin near 40%. The latest year showed accelerated revenue and profit growth, supported by favorable margin stability and positive EPS development.
indie Semiconductor, Inc.
indie Semiconductor (INDI) experienced volatile revenue growth, with an overall increase but a slight decline of 2.9% in 2024 to 217M USD. Net losses persisted, though net margin improved from -61.2% in 2024. Gross margin was favorable at 41.7%, but EBIT margin remained negative at -63.2%. The recent year showed mixed results with profit losses narrowing but revenue growth slowing, reflecting ongoing operational challenges.
Which one has the stronger fundamentals?
TSM’s fundamentals appear stronger, with consistent revenue and net income growth, high and stable margins, and favorable interest expense management. INDI showed revenue expansion over the long term but sustained losses and negative EBIT margins. While INDI’s gross margin and net margin trends have improved, TSM’s overall financial health and profitability metrics present a more favorable income statement profile.
Financial Ratios Comparison
The following table presents key financial ratios for Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) for the fiscal year 2024, enabling a side-by-side analysis of their recent financial performance.
| Ratios | Taiwan Semiconductor Manufacturing Company Limited (TSM) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| ROE | 27.29% | -31.73% |
| ROIC | 19.99% | -19.25% |
| P/E | 29.04 | -5.35 |
| P/B | 7.92 | 1.70 |
| Current Ratio | 2.36 | 4.82 |
| Quick Ratio | 2.14 | 4.23 |
| D/E (Debt-to-Equity) | 0.25 | 0.95 |
| Debt-to-Assets | 15.65% | 42.34% |
| Interest Coverage | 125.96 | -18.37 |
| Asset Turnover | 0.43 | 0.23 |
| Fixed Asset Turnover | 0.88 | 4.30 |
| Payout Ratio | 31.34% | 0% |
| Dividend Yield | 1.08% | 0% |
Interpretation of the Ratios
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited shows predominantly strong financial ratios, with favorable net margin (40.02%), ROE (27.29%), and ROIC (20.0%), supporting operational efficiency and profitability. However, valuation metrics such as PE (29.04) and PB (7.92) are less favorable, suggesting possible overvaluation concerns. The company offers dividends with a moderate yield of 1.08%, indicating a balanced shareholder return without excessive payout risks.
indie Semiconductor, Inc.
indie Semiconductor, Inc. presents weak financial ratios, including negative net margin (-61.2%), ROE (-31.73%), and ROIC (-19.25%), reflecting operational and profitability challenges. The company does not pay dividends, consistent with its negative earnings and growth focus, prioritizing reinvestment and R&D. Its liquidity ratios are mixed, with a high current ratio (4.82) but unfavorable interest coverage, revealing financial stress.
Which one has the best ratios?
Taiwan Semiconductor Manufacturing Company Limited holds the stronger financial position with a majority of favorable ratios and consistent profitability, while indie Semiconductor, Inc. faces significant challenges with multiple unfavorable ratios and no dividend distribution. Overall, Taiwan Semiconductor’s ratios reflect greater financial stability and operational strength compared to indie Semiconductor’s weaker metrics.
Strategic Positioning
This section compares the strategic positioning of Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) in terms of Market position, Key segments, and Exposure to technological disruption:
Taiwan Semiconductor Manufacturing Company Limited
- Leading global semiconductor foundry with strong competitive pressure in advanced wafer fabrication.
- Key segments include wafer fabrication for high performance computing, smartphones, IoT, automotive, and consumer electronics.
- Invests in technology startups, enabling adaptation to disruption; exposed to rapid semiconductor technology cycles.
indie Semiconductor, Inc.
- Smaller player focused on automotive semiconductor niche facing high volatility and competitive pressure.
- Focuses on automotive semiconductors and software for driver assistance, connectivity, and electrification applications.
- Concentrated on automotive semiconductors with photonic and electronic technologies, facing disruption in automotive tech evolution.
Taiwan Semiconductor Manufacturing Company Limited vs indie Semiconductor, Inc. Positioning
TSM’s diversified approach spans multiple major semiconductor markets, providing broad revenue streams and technology investment, while INDI concentrates on automotive semiconductors, a narrower but specialized focus. TSM benefits from scale and market reach; INDI faces concentrated sector risk with emerging technologies.
Which has the best competitive advantage?
TSM holds a slightly favorable moat status, creating value despite declining profitability, indicating stronger competitive advantage. INDI’s very unfavorable moat status reflects value destruction and declining returns, signaling weaker competitive positioning.
Stock Comparison
The stock price movements over the past year reveal a strong bullish trend for Taiwan Semiconductor Manufacturing Company Limited (TSM) with significant gains, while indie Semiconductor, Inc. (INDI) experiences a marked bearish decline and contrasting trading dynamics.
Trend Analysis
Taiwan Semiconductor Manufacturing Company Limited (TSM) shows a robust bullish trend with a 152.54% price increase over the past 12 months, accelerating upward from a low of 127.7 to a high of 327.11, accompanied by notable volatility (std deviation 51.25).
indie Semiconductor, Inc. (INDI) exhibits a bearish trend, declining 28.33% over the last year, with deceleration in its price drop, reaching a low of 1.6 and a high of 7.43, and displaying low volatility (std deviation 1.35).
Comparing both, TSM outperforms INDI significantly with strong positive momentum, while INDI faces sustained downward pressure and weaker market performance.
Target Prices
The current analyst consensus on target prices shows promising upside potential for both Taiwan Semiconductor Manufacturing Company Limited and indie Semiconductor, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Taiwan Semiconductor Manufacturing Company Limited | 400 | 330 | 361.25 |
| indie Semiconductor, Inc. | 8 | 8 | 8 |
Analysts expect Taiwan Semiconductor’s price to rise above its current 327.11 USD, indicating a moderate upside. Indie Semiconductor has a consistent target of 8 USD, suggesting significant growth from its present 4.25 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI):
Rating Comparison
TSM Rating
- Rating: A- indicating a very favorable overall assessment by analysts.
- Discounted Cash Flow Score: 5, considered very favorable for future cash flow projections.
- ROE Score: 5, showing very favorable efficiency in generating profit from shareholders’ equity.
- ROA Score: 5, demonstrating very favorable asset utilization effectiveness.
- Debt To Equity Score: 3, a moderate indication of financial risk and balance sheet strength.
- Overall Score: 4, categorized as favorable financial standing by analysts.
INDI Rating
- Rating: C- reflecting a very unfavorable overall assessment by analysts.
- Discounted Cash Flow Score: 1, regarded as very unfavorable for future cash flow projections.
- ROE Score: 1, indicating very unfavorable efficiency in profit generation from equity.
- ROA Score: 1, showing very unfavorable asset utilization effectiveness.
- Debt To Equity Score: 1, representing very unfavorable financial risk and weak balance sheet.
- Overall Score: 1, marked as very unfavorable financial standing by analysts.
Which one is the best rated?
Based strictly on the provided data, TSM is significantly better rated than INDI across all key financial scores and overall rating. TSM’s scores reflect a favorable to very favorable assessment, whereas INDI’s ratings are very unfavorable in most categories.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for TSM and INDI:
TSM Scores
- Altman Z-Score: 2.94, positioned in the grey zone indicating moderate risk.
- Piotroski Score: 8, classified as very strong financial health.
INDI Scores
- Altman Z-Score: 0.12, in the distress zone indicating high bankruptcy risk.
- Piotroski Score: 2, classified as very weak financial health.
Which company has the best scores?
TSM outperforms INDI in both key financial scores, with a much stronger Piotroski Score and a safer Altman Z-Score, indicating better financial health overall.
Grades Comparison
Here is a detailed comparison of the recent grades assigned to Taiwan Semiconductor Manufacturing Company Limited and indie Semiconductor, Inc.:
Taiwan Semiconductor Manufacturing Company Limited Grades
This table summarizes the latest grades from reputable financial institutions for Taiwan Semiconductor Manufacturing Company Limited:
| 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 |
The grades for Taiwan Semiconductor Manufacturing Company Limited consistently indicate strong positive sentiment with repeated “Buy,” “Outperform,” and “Overweight” ratings.
indie Semiconductor, Inc. Grades
Below is the summary of recent grades from recognized grading companies for indie Semiconductor, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-11-10 |
| Benchmark | Maintain | Buy | 2025-06-25 |
| Benchmark | Maintain | Buy | 2025-06-11 |
| Benchmark | Maintain | Buy | 2025-05-21 |
| Benchmark | Maintain | Buy | 2025-05-13 |
| Craig-Hallum | Maintain | Buy | 2025-05-13 |
| Keybanc | Maintain | Overweight | 2025-05-13 |
| Benchmark | Maintain | Buy | 2025-04-09 |
| Benchmark | Maintain | Buy | 2025-02-21 |
| Keybanc | Maintain | Overweight | 2025-02-21 |
Grades for indie Semiconductor, Inc. predominantly show a “Buy” consensus, with a single “Neutral” rating, reflecting a favorable but slightly less unanimous outlook compared to Taiwan Semiconductor.
Which company has the best grades?
Taiwan Semiconductor Manufacturing Company Limited has received more consistently positive and stronger grades, including multiple “Outperform” and “Overweight” ratings, compared to indie Semiconductor’s mostly “Buy” and one “Neutral.” This suggests greater analyst confidence in Taiwan Semiconductor, which could influence investor perception of stability and growth potential.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) based on recent financial and operational data.
| Criterion | Taiwan Semiconductor Manufacturing Company Limited (TSM) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| Diversification | Strong focus on wafer manufacturing with some other product lines; high revenue scale (over TWD 2T in wafers). | Limited diversification; revenue mainly from products and some services, smaller scale (USD ~203M product revenue). |
| Profitability | High profitability with net margin ~40%, ROIC 20%, and positive value creation. | Negative profitability with net margin -61%, ROIC -19%, and value destruction. |
| Innovation | Established leader with significant R&D and technology edge in semiconductor manufacturing. | Emerging player with innovation challenges reflected in poor financial metrics and declining ROIC. |
| Global presence | Global leader with extensive market share in semiconductor foundry. | Smaller scale, less global presence, and lower market penetration. |
| Market Share | Dominant in foundry market with sustained large revenue and client base. | Small and niche market share with volatile financial performance. |
Key takeaways: TSM demonstrates solid strengths in profitability and market leadership despite a slightly declining ROIC trend. INDI struggles with profitability and efficient capital use, posing higher investment risks. Investors should weigh TSM’s stable moat against INDI’s uncertain outlook.
Risk Analysis
Below is a comparative overview of key risks for Taiwan Semiconductor Manufacturing Company Limited (TSM) and indie Semiconductor, Inc. (INDI) based on the most recent 2024 data.
| Metric | Taiwan Semiconductor Manufacturing Company Limited (TSM) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| Market Risk | Moderate (Beta 1.27) | High (Beta 2.54) |
| Debt level | Low (Debt/Equity 0.25, Debt to Assets 15.65%) | High (Debt/Equity 0.95, Debt to Assets 42.34%) |
| Regulatory Risk | Moderate (operates globally including Taiwan, China, US) | Moderate (US-based, automotive semiconductors) |
| Operational Risk | Moderate (complex wafer fabrication, global supply chain) | High (smaller scale, automotive tech dependence) |
| Environmental Risk | Moderate (semiconductor manufacturing impact) | Moderate (automotive semiconductor production) |
| Geopolitical Risk | High (Taiwan-China tensions affect supply chain) | Moderate (US-based but automotive sector sensitive to trade) |
TSM’s most significant risk is geopolitical, given Taiwan’s strategic position and ongoing tensions that could disrupt supply chains. INDI faces higher market and operational risks, compounded by weak financial health and high debt, making it vulnerable in volatile markets. Investors should weigh TSM’s stable financials and geopolitical exposure against INDI’s elevated financial and business risks.
Which Stock to Choose?
Taiwan Semiconductor Manufacturing Company Limited (TSM) shows strong income evolution with 33.89% revenue growth in 2024 and favorable profitability, including a 40.02% net margin. Its financial ratios mostly rate favorable with solid debt management and a very favorable A- rating. The company creates value with ROIC above WACC, though profitability trends slightly downward.
Indie Semiconductor, Inc. (INDI) presents a more volatile picture with negative net margin (-61.2%) and declining income trends, despite a high gross margin. Its financial ratios are mostly unfavorable, reflecting losses and operational challenges, accompanied by a very unfavorable C- rating. The firm is shedding value, with ROIC well below WACC and deteriorating profitability.
For investors, TSM’s favorable rating and consistent income growth might appeal to those seeking quality and stability, while INDI’s profile could be interpreted as suitable only for risk-tolerant investors focusing on potential turnaround or growth opportunities amid high uncertainty.
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 indie Semiconductor, Inc. to enhance your investment decisions:
