Why Taiwan Semiconductor Will Keep Soaring

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract chip giant Taiwan Semiconductor Manufacturing (NYSE: TSM  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at TSMC and see what CAPS investors are saying about the stock right now.

TSMC facts

Headquarters (founded)	Hsinchu, Taiwan (1987)
Market Cap	$87.9 billion
Industry	Semiconductors
Trailing-12-Month Revenue	$16.4 billion
Management	Chairman/CEO Dr. Morris Chang CFO Lora Hong
Return on Equity (average, past 3 years)	26.7%
Cash / Debt	$5.1 billion / $3.7 billion
Dividend Yield	2.3%
Competitors	Semiconductor Manufacturing International (NYSE: SMI  ) United Microelectronics (NYSE: UMC  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,402 members who have rated TSMC believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, adamlevy, tapped TSMC as a particularly timely opportunity:

Likely beneficiary�of the fallout between Apple (NASDAQ: AAPL  ) and Samsung. Even without Apple's business the company will flourish in 2013. IT has contracts with big chip makers like Qualcomm (NASDAQ: QCOM  ) , NVIDIA (NASDAQ: NVDA  ) , and Broadcom (NASDAQ: BRCM  ) , and still does some business with Apple. The company is growing its production capacity, as it becomes the largest mobile chip manufacturer in the world. At a P/E [of 16], I believe the company is undervalued.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, TSMC may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.