FORM vs. TSM

Last updated Jun 24, 2026

FORM (FormFactor, Inc.) and TSM (Taiwan Semiconductor Manufacturing Company Limited) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past 10 years, FORM returned 31.96%/yr vs 36.14%/yr for TSM. At a 0.47 correlation, their price movements are largely independent.

Performance

FORM vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FormFactor, Inc. (FORM) and Taiwan Semiconductor Manufacturing Company Limited (TSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FORM achieves a 155.99% return, which is significantly higher than TSM's 44.34% return. Over the past 10 years, FORM has underperformed TSM with an annualized return of 31.96%, while TSM has yielded a comparatively higher 36.14% annualized return.

FORM

• 1D: -8.85%
• 1M: 10.70%
• YTD: 155.99%
• 6M: 145.51%
• 1Y: 331.13%
• 3Y*: 68.34%
• 5Y*: 32.43%
• 10Y*: 31.96%

TSM

• 1D: -6.69%
• 1M: 8.13%
• YTD: 44.34%
• 6M: 47.71%
• 1Y: 109.75%
• 3Y*: 64.69%
• 5Y*: 32.19%
• 10Y*: 36.14%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FORM vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FORM FormFactor, Inc.	155.99%	26.77%	5.49%	87.63%	-51.38%	6.28%	65.65%	84.32%	-9.97%	39.73%
TSM Taiwan Semiconductor Manufacturing Company Limited	44.34%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%

Correlation

The correlation between FORM and TSM is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jun 12, 2003	0.47

The correlation between FORM and TSM shifts across timeframes, from 0.47 (all time) to 0.59 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap FORM : $11.34B TSM : $2.26T
EPS FORM : $0.87 TSM : NT$373.98
PE Ratio FORM : 163.87 TSM : 36.89
PS Ratio FORM : 13.34 TSM : 17.34
PB Ratio FORM : 10.71 TSM : 12.15
Total Revenue (TTM) FORM : $839.78M TSM : NT$4.13T
Gross Profit (TTM) FORM : $332.34M TSM : NT$2.55T
EBITDA (TTM) FORM : $97.87M TSM : NT$3.14T

Return for Risk

FORM vs. TSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FORM

FORM Risk / Return Rank: 97
FORM Sharpe Ratio Rank: 98
FORM Sortino Ratio Rank: 95
FORM Omega Ratio Rank: 95
FORM Calmar Ratio Rank: 98
FORM Martin Ratio Rank: 98

TSM

TSM Risk / Return Rank: 93
TSM Sharpe Ratio Rank: 95
TSM Sortino Ratio Rank: 92
TSM Omega Ratio Rank: 90
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FORM vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FormFactor, Inc. (FORM) and Taiwan Semiconductor Manufacturing Company Limited (TSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FORM	TSM	Difference
Sharpe ratio: Return per unit of total volatility	4.64	2.89	+1.75
Sortino ratio: Return per unit of downside risk	3.99	3.41	+0.58
Omega ratio: Gain probability vs. loss probability	1.54	1.42	+0.12
Calmar ratio: Return relative to maximum drawdown	12.93	6.08	+6.85
Martin ratio: Return relative to average drawdown	29.24	21.46	+7.78

FORM vs. TSM - Sharpe Ratio Comparison

The current FORM Sharpe Ratio is 4.64, which is higher than the TSM Sharpe Ratio of 2.89. The chart below compares the historical Sharpe Ratios of FORM and TSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FORM vs. TSM - Drawdown Comparison

The maximum FORM drawdown since its inception was -92.36%, roughly equal to the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for FORM and TSM.

Drawdown Indicators

	FORM	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-92.36%	-89.08%	-3.28%
Max Drawdown (1Y) Largest decline over 1 year	-25.80%	-18.14%	-7.66%
Max Drawdown (3Y) Largest decline over 3 years	-62.75%	-36.82%	-25.93%
Max Drawdown (5Y) Largest decline over 5 years	-62.75%	-56.47%	-6.28%
Max Drawdown (10Y) Largest decline over 10 years	-64.42%	-56.47%	-7.95%
Current Drawdown Current decline from peak	-8.85%	-6.69%	-2.16%
Average Drawdown Average peak-to-trough decline	-51.43%	-42.81%	-8.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.39%	5.13%	+6.26%

Volatility

FORM vs. TSM - Volatility Comparison

FormFactor, Inc. (FORM) has a higher volatility of 29.20% compared to Taiwan Semiconductor Manufacturing Company Limited (TSM) at 16.35%. This indicates that FORM's price experiences larger fluctuations and is considered to be riskier than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FORM	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	29.20%	16.35%	+12.85%
Volatility (6M) Calculated over the trailing 6-month period	53.70%	29.96%	+23.74%
Volatility (1Y) Calculated over the trailing 1-year period	71.85%	38.15%	+33.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.61%	37.77%	+18.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	53.67%	34.39%	+19.28%

Dividends

FORM vs. TSM - Dividend Comparison

FORM has not paid dividends to shareholders, while TSM's dividend yield for the trailing twelve months is around 0.81%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FORM FormFactor, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TSM Taiwan Semiconductor Manufacturing Company Limited	0.81%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%

Financials

FORM vs. TSM - Profitability Comparison

The chart below illustrates the profitability comparison between FormFactor, Inc. and Taiwan Semiconductor Manufacturing Company Limited over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

FORM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, FormFactor, Inc. reported a gross profit of 86.79M and revenue of 226.14M. Therefore, the gross margin over that period was 38.4%.

TSM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a gross profit of 759.06B and revenue of 1.15T. Therefore, the gross margin over that period was 66.3%.

FORM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, FormFactor, Inc. reported an operating income of 16.65M and revenue of 226.14M, resulting in an operating margin of 7.4%.

TSM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported an operating income of 664.08B and revenue of 1.15T, resulting in an operating margin of 58.0%.

FORM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, FormFactor, Inc. reported a net income of 20.38M and revenue of 226.14M, resulting in a net margin of 9.0%.

TSM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a net income of 578.40B and revenue of 1.15T, resulting in a net margin of 50.5%.

Frequently Asked Questions

Can I hold both FORM and TSM in my portfolio?

FORM and TSM have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FORM or TSM?

FORM has higher volatility (29.20%) compared to TSM (16.35%). In terms of maximum drawdown, FORM dropped -92.36% vs TSM's -89.08%.

Which has better risk-adjusted returns?

FORM currently has the higher Sharpe Ratio (4.64 vs 2.89), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.