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Better Buy: Taiwan Semiconductor vs. Intel


Investing in chipmakers seems smart, considering how integrated microchips are becoming a part of almost every type of technology we use. Among the chipmakers, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) and Intel (NASDAQ: INTC) are two names that often come up. Both companies are heavyweights in their industries but also have different business models. As a perk, each pays a respectable dividend, attracting investors looking for portfolio income.

So if I had to choose one, which of these semiconductor stocks is the better buy? 

Taiwan Semiconductor Manufacturing Company, also known as TSMC, is only a producer of chips -- not a marketer. Its customers are tech giants that need chips produced for their products, like Apple (its largest customer), AMD, Nvidia, and even Intel itself. Because Taiwan Semiconductor is considered one of the best in the business, its customers don't have anywhere else to go because of its capacity and expertise.

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Source Fool.com

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