MCHP vs. TSM: Microchip vs. Taiwan Semiconductor Mfg Stock Comparison

November 11, 2026

How do Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM) are both classified in the Semiconductors sub-industry within the broader Semiconductors & Semiconductor Equipment industry, placing them in the closest GICS peer bucket.

Microchip (MCHP) trades as ordinary local shares, while Taiwan Semiconductor Mfg (TSM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Profile Item	MCHP	TSM
Name	Microchip Technology Inc.	Taiwan Semiconductor Manufacturing Company Ltd. ADR
Country/Region	United States	Taiwan
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors	Semiconductors
Market Capitalization	31.76 billion USD	1,947.21 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	March 19, 1993	October 9, 1997
Security Type	Common Stock	ADR

Price Performance

Cumulative Growth

MCHP

TSM

GSPC

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
Total Return (1Y)	11.53%	37.26%
Total Return (3Y, Annualized)	-3.63%	64.12%
Total Return (5Y, Annualized)	-3.83%	28.19%

Risk Profile

Drawdown History

MCHP

TSM

GSPC

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
Volatility (1Y, Annualized)	52.96%	41.69%
Beta (5Y)	1.91	1.45
Max Drawdown (5Y)	-63.77%	-56.47%
Avg. Volume (3M)	10.34M	11.20M

Risk-Adjusted Performance

Risk-Return Positioning

MCHP and TSM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
Sharpe Ratio (1Y)	0.14	0.79
Sortino Ratio (1Y)	0.21	1.15

Profitability

ROE (TTM)

Taiwan Semiconductor Mfg (TSM) at 41.86% sits in the top ROE quartile, while Microchip (MCHP) at 12.57% is closer to the peer norm — stronger capital efficiency for TSM.

MCHP

Semiconductors & Semiconductor Equipment industry group

12.57%

Max: 52.82%
Q3: 22.26%
MCHP: 12.57%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

TSM

Semiconductors & Semiconductor Equipment industry group

41.86%

Max: 52.82%
TSM: 41.86%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

Taiwan Semiconductor Mfg (TSM) at 51.12% retains a top-quartile share of revenue as profit, ahead of Microchip (MCHP) at 14.96%, which keeps about the industry-typical share.

MCHP

Semiconductors & Semiconductor Equipment industry group

14.96%

Max: 63.80%
Q3: 28.36%
MCHP: 14.96%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

TSM

Semiconductors & Semiconductor Equipment industry group

51.12%

Max: 63.80%
TSM: 51.12%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Taiwan Semiconductor Mfg (TSM) at 58.66% operates in the top operating margin quartile, ahead of Microchip (MCHP) at 29.13%, which runs around its industry’s norm.

MCHP

Semiconductors & Semiconductor Equipment industry group

29.13%

Max: 58.66%
Q3: 30.23%
MCHP: 29.13%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

TSM

Semiconductors & Semiconductor Equipment industry group

58.66%

TSM: 58.66%
Max: 58.66%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
ROE (TTM)	12.57%	41.86%
ROA (TTM)	5.19%	20.58%
Net Margin (TTM)	14.96%	51.12%
Operating Margin (TTM)	29.13%	58.66%
Gross Margin (TTM)	62.70%	65.85%

Growth

Revenue Growth

Taiwan Semiconductor Mfg (TSM) at 31.61% sits in the top revenue growth quartile, while Microchip (MCHP) at 7.08% is closer to the peer norm — faster top-line expansion for TSM.

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Taiwan Semiconductor Mfg (TSM) reports EPS growth of 46.41%, ranked against its industry; Microchip (MCHP) has no EPS growth figure this period.

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
Revenue Growth (YoY)	7.08%	31.61%
Revenue Growth (3Y CAGR)	-17.65%	18.94%
EPS Growth (YoY)	--	46.41%
EPS Growth (3Y CAGR)	-62.03%	19.12%

Financial Strength

Current Ratio (MRQ)

Taiwan Semiconductor Mfg (TSM) at 2.51 keeps current ratio within its industry’s typical mid-range, while Microchip (MCHP) at 2.24 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for MCHP.

MCHP

Semiconductors & Semiconductor Equipment industry group

2.24

Max: 10.33
Q3: 5.62
Median: 3.33
Q1: 2.35
MCHP: 2.24
Min: 1.03

TSM

Semiconductors & Semiconductor Equipment industry group

2.51

Max: 10.33
Q3: 5.62
Median: 3.33
TSM: 2.51
Q1: 2.35
Min: 1.03

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Taiwan Semiconductor Mfg (TSM) at 0.12 carries an industry-typical debt-to-equity mix, while Microchip (MCHP) at 0.84 uses more debt funding than most peers.

MCHP

Semiconductors & Semiconductor Equipment industry group

0.84

Max: 1.46
MCHP: 0.84
Q3: 0.65
Median: 0.27
Q1: 0.04
Min: 0.00

TSM

Semiconductors & Semiconductor Equipment industry group

0.12

Max: 1.46
Q3: 0.65
Median: 0.27
TSM: 0.12
Q1: 0.04
Min: 0.00

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
Current Ratio (MRQ)	2.24	2.51
Debt / Equity (MRQ)	0.84	0.12
Net Debt / EBITDA	2.73	-0.89

Dividends

Dividend Yield (TTM)

Both Microchip (MCHP) at 2.81% and Taiwan Semiconductor Mfg (TSM) at 1.70% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MCHP

Semiconductors & Semiconductor Equipment industry group

2.81%

MCHP: 2.81%
Max: 1.37%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

1.70%

TSM: 1.70%
Max: 1.37%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Microchip (MCHP) reports payout ratio above 100% at 136.84%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Taiwan Semiconductor Mfg (TSM) reports 24.46%, ranking against industry peers normally.

MCHP

Semiconductors & Semiconductor Equipment industry group

136.84%

MCHP: 136.84%
Max: 49.64%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

24.46%

Max: 49.64%
TSM: 24.46%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
Dividend Yield (TTM)	2.81%	1.70%
Dividend Payout Ratio (TTM)	136.84%	24.46%

Valuation

P/E Ratio (TTM)

Both Microchip (MCHP) at 43.87 and Taiwan Semiconductor Mfg (TSM) at 24.33 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

MCHP

Semiconductors & Semiconductor Equipment industry group

43.87

Max: 110.34
Q3: 66.81
MCHP: 43.87
Median: 37.02
Q1: 23.96
Min: 8.12

TSM

Semiconductors & Semiconductor Equipment industry group

24.33

Max: 110.34
Q3: 66.81
Median: 37.02
TSM: 24.33
Q1: 23.96
Min: 8.12

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

Taiwan Semiconductor Mfg (TSM) at 0.39 sits in the cheaper P/S ratio quartile while Microchip (MCHP) at 5.67 prices around its industry’s middle — TSM costs less per dollar of sales, though read it alongside growth and margins.

MCHP

Semiconductors & Semiconductor Equipment industry group

5.67

Max: 21.42
Q3: 12.27
Median: 5.76
MCHP: 5.67
Q1: 2.73
Min: 0.00

TSM

Semiconductors & Semiconductor Equipment industry group

0.39

Max: 21.42
Q3: 12.27
Median: 5.76
Q1: 2.73
TSM: 0.39
Min: 0.00

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Microchip (MCHP) at 4.78 sits near its industry’s typical P/B ratio, while Taiwan Semiconductor Mfg (TSM) at 71.65 prices above its benchmark range — TSM looks rich relative to book.

MCHP

Semiconductors & Semiconductor Equipment industry group

4.78

Max: 14.06
Q3: 7.44
MCHP: 4.78
Median: 4.29
Q1: 2.30
Min: 0.20

TSM

Semiconductors & Semiconductor Equipment industry group

71.65

TSM: 71.65
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Microchip (MCHP) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Microchip (MCHP) and Taiwan Semiconductor Mfg (TSM)
Metric	MCHP	TSM
P/E Ratio (TTM)	43.87	24.33
P/S Ratio (TTM)	5.67	0.39
P/B Ratio (MRQ)	4.78	71.65
Free Cash Flow Yield (TTM)	4.85%	61.78%