TSM vs. MCHP
TSM (Taiwan Semiconductor Manufacturing Company Limited) and MCHP (Microchip Technology Incorporated) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past 10 years, TSM returned 35.71%/yr vs 15.50%/yr for MCHP. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
TSM vs. MCHP - Performance Comparison
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Returns By Period
In the year-to-date period, TSM achieves a 40.84% return, which is significantly lower than MCHP's 44.96% return. Over the past 10 years, TSM has outperformed MCHP with an annualized return of 35.71%, while MCHP has yielded a comparatively lower 15.50% annualized return.
TSM
- 1D
- 2.80%
- 1M
- 3.67%
- YTD
- 40.84%
- 6M
- 42.15%
- 1Y
- 110.53%
- 3Y*
- 63.10%
- 5Y*
- 31.67%
- 10Y*
- 35.71%
MCHP
- 1D
- 3.43%
- 1M
- -7.33%
- YTD
- 44.96%
- 6M
- 37.15%
- 1Y
- 43.83%
- 3Y*
- 7.14%
- 5Y*
- 6.01%
- 10Y*
- 15.50%
TSM vs. MCHP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TSM Taiwan Semiconductor Manufacturing Company Limited | 40.84% | 55.91% | 92.58% | 42.33% | -36.75% | 12.09% | 92.67% | 64.85% | -3.50% | 41.46% |
MCHP Microchip Technology Incorporated | 44.96% | 14.61% | -34.96% | 30.90% | -17.98% | 27.49% | 33.73% | 48.02% | -16.71% | 39.46% |
Correlation
The correlation between TSM and MCHP is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.56 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 1997 | 0.53 |
The correlation between TSM and MCHP shifts across timeframes, from 0.36 (1 year) to 0.58 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
TSM:
$373.98
MCHP:
$0.43
TSM:
1.14
MCHP:
212.69
TSM:
0.03
MCHP:
3.21
TSM:
0.54
MCHP:
7.87
TSM:
$4.13T
MCHP:
$4.71B
TSM:
$2.55T
MCHP:
$2.72B
TSM:
$3.14T
MCHP:
$1.02B
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Return for Risk
TSM vs. MCHP — Risk / Return Rank
TSM
MCHP
TSM vs. MCHP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Microchip Technology Incorporated (MCHP). 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.
| TSM | MCHP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.05 | ||
| Sortino ratioReturn per unit of downside risk | +1.90 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.20 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 6.13 | 1.28 | +4.85 |
| Martin ratioReturn relative to average drawdown | 21.94 | 3.40 | +18.54 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TSM | MCHP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.06 | 1.01 | +2.05 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.85 | 0.14 | +0.71 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.05 | 0.37 | +0.68 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.37 | 0.43 | -0.06 |
Drawdowns
TSM vs. MCHP - Drawdown Comparison
The maximum TSM drawdown since its inception was -89.08%, which is greater than MCHP's maximum drawdown of -63.77%. Use the drawdown chart below to compare losses from any high point for TSM and MCHP.
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Drawdown Indicators
| TSM | MCHP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -89.08% | -63.77% | -25.31% |
Max Drawdown (1Y)Largest decline over 1 year | -18.14% | -34.41% | +16.27% |
Max Drawdown (3Y)Largest decline over 3 years | -36.82% | -63.77% | +26.95% |
Max Drawdown (5Y)Largest decline over 5 years | -56.47% | -63.77% | +7.30% |
Max Drawdown (10Y)Largest decline over 10 years | -56.47% | -63.77% | +7.30% |
Current DrawdownCurrent decline from peak | -4.45% | -10.78% | +6.33% |
Average DrawdownAverage peak-to-trough decline | -42.87% | -16.71% | -26.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.06% | 12.93% | -7.87% |
Volatility
TSM vs. MCHP - Volatility Comparison
The current volatility for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 12.47%, while Microchip Technology Incorporated (MCHP) has a volatility of 14.52%. This indicates that TSM experiences smaller price fluctuations and is considered to be less risky than MCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TSM | MCHP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.47% | 14.52% | -2.05% |
Volatility (6M)Calculated over the trailing 6-month period | 28.23% | 31.67% | -3.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.40% | 43.78% | -7.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 37.40% | 44.07% | -6.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 34.20% | 41.86% | -7.66% |
Dividends
TSM vs. MCHP - Dividend Comparison
TSM's dividend yield for the trailing twelve months is around 0.78%, less than MCHP's 1.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MCHP Microchip Technology Incorporated | 1.99% | 2.86% | 3.16% | 1.76% | 1.65% | 0.98% | 1.07% | 1.40% | 2.02% | 1.65% | 2.24% | 3.07% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 0.78% | 1.00% | 1.18% | 1.78% | 2.49% | 1.57% | 1.56% | 3.46% | 3.64% | 2.32% | 2.61% | 2.54% |
Financials
TSM vs. MCHP - Financials Comparison
This section allows you to compare key financial metrics between Taiwan Semiconductor Manufacturing Company Limited and Microchip Technology Incorporated. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
TSM vs. MCHP - Profitability Comparison
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%.
MCHP - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microchip Technology Incorporated reported a gross profit of 967.30M and revenue of 1.31B. Therefore, the gross margin over that period was 73.8%.
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%.
MCHP - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microchip Technology Incorporated reported an operating income of 211.10M and revenue of 1.31B, resulting in an operating margin of 16.1%.
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%.
MCHP - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microchip Technology Incorporated reported a net income of 116.40M and revenue of 1.31B, resulting in a net margin of 8.9%.
Frequently Asked Questions
TSM and MCHP have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MCHP has higher volatility (14.52%) compared to TSM (12.47%). In terms of maximum drawdown, TSM dropped -89.08% vs MCHP's -63.77%.
TSM currently has the higher Sharpe Ratio (3.06 vs 1.01), 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.
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