Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, the United States, and internationally. It operates through three segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor devices designed to enable power conversion, including power switching, signal conditioning, and circuit protection technologies. Its Analog and Mixed-Signal Group segment designs and develops analog and mixed-signal solutions, including power management, sensor interface, connectivity, and standard products for automotive, industrial automation, AI data centers, computing, and mobile end markets. The Intelligent Sensing Group segment develops complementary metal-oxide-semiconductor image sensors, image signal processors, short-wave infrared sensors, and other products, as well as photon-counting technologies, including single-photon avalanche diode arrays and silicon photomultiplier devices for depth sensing, factory automation, safety systems, and robotics industries. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Scottsdale, Arizona.

Latest Semiconductors & Semiconductor Equipment and Taiwan Semiconductor Manufacturing Company Limited, ON Semiconductor Corporation Stock News

As of September 2, 2026, Taiwan Semiconductor Manufacturing Company Limited had a $1.9 trillion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $4.7 million. Taiwan Semiconductor Manufacturing Company Limited’s stock is up 34.8% in 2026, down 4.1% in the previous five trading days and up 81.93% in the past year.

Currently, Taiwan Semiconductor Manufacturing Company Limited’s price-earnings ratio is 154.6. Taiwan Semiconductor Manufacturing Company Limited’s trailing 12-month revenue is $139.6 billion with a 49.9% net profit margin. Year-over-year quarterly sales growth most recently was 25.1%. Analysts expect adjusted earnings to reach $16.911 per share for the current fiscal year. Taiwan Semiconductor Manufacturing Company Limited currently has a 1.0% dividend yield.

As of September 2, 2026, ON Semiconductor Corporation had a $28.2 billion market cap, putting it in the 89th percentile of all stocks. ON Semiconductor Corporation’s stock is up 35.7% in 2026, down 1.8% in the previous five trading days and up 47.83% in the past year.

Currently, ON Semiconductor Corporation’s price-earnings ratio is 46.3. ON Semiconductor Corporation’s trailing 12-month revenue is $6.2 billion with a 10.2% net profit margin. Year-over-year quarterly sales growth most recently was 9.2%. Analysts expect adjusted earnings to reach $3.202 per share for the current fiscal year. ON Semiconductor Corporation does not currently pay a dividend.

How We Compare Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation’s stock grades to see how they measure up against one another.

Learn more about A+ Investor here!

Sign Up to Receive a Free Special Report Showing How A+ Grades Can Help You Make Smarter Investment Decisions

Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation Stock Value Grades

Company	Ticker	Value
Taiwan Semiconductor Manufacturing Company Limited	TSM	D
ON Semiconductor Corporation	ON	D

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Taiwan Semiconductor Manufacturing Company Limited has a Value Score of 31, which is Expensive. ON Semiconductor Corporation has a Value Score of 29, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation is the better investment when it comes to value.

Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation Growth Grades

Company	Ticker	Growth
Taiwan Semiconductor Manufacturing Company Limited	TSM	C
ON Semiconductor Corporation	ON	C

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Taiwan Semiconductor Manufacturing Company Limited has a Growth Score of 59, which is Average. ON Semiconductor Corporation has a Growth Score of 43, which is Average.

The Growth Stock Winner: No Clear Winner

Neither Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation is the better investment when it comes to sustainable growth.

Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Taiwan Semiconductor Manufacturing Company Limited	TSM	B
ON Semiconductor Corporation	ON	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Taiwan Semiconductor Manufacturing Company Limited has a Earnings Estimate Score of 64, which is Positive. ON Semiconductor Corporation has a Earnings Estimate Score of 62, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation is a better fit.

Other Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation Grades

In addition to Value, Estimate Revisions and Growth, A+ Investor also provides grades for Momentum and Quality.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Taiwan Semiconductor Manufacturing Company Limited or ON Semiconductor Corporation Stock?

Overall, Taiwan Semiconductor Manufacturing Company Limited stock has a Value Score of 31, Growth Score of 59 and Estimate Revisions Score of 64.

ON Semiconductor Corporation stock has a Value Score of 29, Growth Score of 43 and Estimate Revisions Score of 62.

Comparing Taiwan Semiconductor Manufacturing Company Limited and ON Semiconductor Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.