Despite COVID-19, Taiwan Semiconductor Manufacturing Still a Top Income Stock

When it comes to semiconductor investing, attention falls mostly to companies that are vertically integrated (think Intel and Texas Instruments) -- those companies that design and manufacture their chips in-house -- or "fabless" firms like Qualcomm and NVIDIA that design chips but farm out the manufacturing process. Far less attention goes to those companies that are a pure-play on the semiconductor manufacturing itself.

But that would be a mistake. The world's largest chip foundry pure-play, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), continues to grow at a slow and steady clip, all the while doling out a dividend (currently yielding 3.2%). Coronavirus lockdown or not, between progressively smaller chip designs, advancing computing power, and generally increasing use of semiconductors overall, this is an income portfolio staple stock.  

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Source Fool.com