Better Semiconductor Stock: TSMC vs. UMC

Taiwan Semiconductor Manufacturing (NYSE: TSM) has attracted a lot of attention as the global chip shortage has worsened over the past two years. As the world's largest and most advanced contract chipmaker, TSMC is a linchpin of the semiconductor sector, and the chip shortage probably won't end until it significantly increases its capacity.

However, TSMC's smaller Taiwanese rival, United Microelectronics (NYSE: UMC), attracts a lot less attention. That's probably because UMC manufactures larger and older chips instead of the cutting-edge ones that dominate TSMC's manufacturing plants.

Image source: Getty Images.

Continue reading

Source Fool.com