3 Reasons to Avoid Taiwan Semiconductor Stock

Taiwan Semiconductor Manufacturing (NYSE: TSM) has powered its way to impressive returns, especially in the past couple of years. The willingness for fabless chip companies to outsource their chip manufacturing work to TSMC as well as a burgeoning technical lead the company has developed have both been beneficial to this semiconductor specialist.

However, investors may want to rethink opening new positions in this company's stock considering there are three notable dangers the company is facing. What dangers? Let's take a closer look.

TSMC has generated significant investor returns by playing its part in powering a digital revolution. In the last year alone, the stock price has risen by almost 120%. Over 10 years, that return exceeds 810%.

Source Fool.com