Taiwan-Asia Semiconductor Corporation (2340) AI Stock Analysis

Taiwan-Asia Semiconductor Corporation

(TWSE:2340)

Select Model

Rating:30Underperform

Price Target:TWD 31.00▼(-23.83% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by severely deteriorating fundamentals: negative gross and operating margins, a widening NT$1.26bn net loss, negative operating cash flow for two straight years, and a tenfold increase in debt that has pushed debt-to-equity to 0.85 while equity shrinks. Technicals reinforce the caution, with the price below its 20-, 50- and 100-day moving averages and a negative MACD, though an extremely low stochastic reading suggests the stock is short-term oversold near 200-day support. Valuation provides no cushion given negative earnings and no dividend. The main upside case rests on a cyclical demand recovery, lower capital spending and the significant operating leverage from newly added capacity, but until utilization and margins improve the risk profile remains elevated.

Positive Factors

Revenue GrowthPositive revenue growth indicates the company continues to generate demand for its semiconductor and electronics products. If maintained, this expansion can support operating scale, strengthen customer reach, and provide a foundation for restoring profitability when margins improve.

Negative Factors

Severe Profitability DeteriorationThe collapse in gross and net margins indicates that recent revenue is not translating into economic profit. Negative margins can erode equity, restrict reinvestment, and make earnings recovery dependent on sustained improvements in pricing, costs, or product mix.

Taiwan-Asia Semiconductor Corporation (2340) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 18.46B
Dividend Yield: ―
Average Volume (3M): 14.55M
Price to Earnings (P/E): -22.7
Beta (1Y): 1.41
Revenue Growth: 5.05%
EPS Growth: 34.85%
Country: TW
Employees: 1,200
Sector: General
Sector Strength: 55
Industry: Semiconductors

Taiwan-Asia Semiconductor Corporation Business Overview & Revenue Model

Company Description

Taiwan-Asia Semiconductor Corporation specializes in the development, production, and worldwide distribution of integrated optoelectronic semiconductor solutions. Its comprehensive product offerings include essential components like LED chips and a v...

Taiwan-Asia Semiconductor Corporation Financial Statement Overview

Summary

Financials are the dominant weakness. Revenue has stabilized around NT$4.3bn but remains ~30% below the 2021 peak, while gross margin collapsed from 32.2% to -3.2%, driving an operating margin of -29.7% and a widening net loss of NT$1.26bn. Even EBITDA turned negative in 2025, showing losses are not merely depreciation-driven. Cash flow is the weakest link: two consecutive years of negative operating cash flow and four straight years of negative free cash flow, forcing debt to rise from NT$0.5bn to NT$5.6bn and lifting debt-to-equity to 0.85 while equity erodes and ROE sits at -19.2%. Partial offsets include an equity base still at ~45% of assets, a stabilizing top line, and a sharply reduced capex burden that narrowed the cash burn in 2025, leaving operating leverage if the cycle turns.

Income Statement

18Very Negative

Balance Sheet

37Negative

Cash Flow

17Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.37B	4.33B	4.30B	3.97B	4.53B	6.14B
Gross Profit	-233.79M	-137.63M	505.25M	930.43M	1.21B	1.98B
EBITDA	183.47M	-182.20M	283.07M	837.33M	906.64M	1.50B
Net Income	-951.17M	-1.26B	-510.09M	307.21M	360.46M	829.37M
Balance Sheet
Total Assets	14.99B	14.70B	14.95B	12.49B	10.55B	12.35B
Cash, Cash Equivalents and Short-Term Investments	2.89B	2.61B	2.38B	2.11B	3.20B	5.00B
Total Debt	6.15B	5.58B	5.00B	2.30B	539.42M	552.30M
Total Liabilities	8.23B	7.63B	7.02B	3.99B	2.05B	2.65B
Stockholders Equity	6.35B	6.56B	7.53B	8.32B	8.51B	9.69B
Cash Flow
Free Cash Flow	-1.02B	-1.31B	-2.91B	-2.77B	541.09M	1.18B
Operating Cash Flow	-14.23M	-300.95M	-105.11M	317.29M	1.51B	1.74B
Investing Cash Flow	-191.33M	-506.29M	-2.41B	-2.86B	-637.14M	-1.44B
Financing Cash Flow	737.77M	1.06B	2.82B	1.52B	-1.32B	71.64M

Taiwan-Asia Semiconductor Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2340 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6138	76Outperform	TWD 15.99B	14.17	―	5.07%	18.18%	48.17%
TW:6719	69Neutral	TWD 17.20B	19.94	―	2.82%	-1.77%	94.13%
TW:8261	69Neutral	TWD 14.98B	20.24	―	3.97%	2.86%	10.89%
TW:3028	56Neutral	TWD 13.86B	6.29	―	5.38%	75.87%	203.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5425	52Neutral	TWD 19.66B	26.95	―	2.55%	7.28%	85.43%
TW:2340	30Underperform	TWD 17.77B	-22.74	―	―	5.05%	34.85%

* General Sector Average

Performance Comparison

TW:2340 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2340	Taiwan-Asia Semiconductor Corporation	40.70	14.60	55.94%
TW:3028	Zenitron Corporation	54.10	18.89	53.66%
TW:5425	Taiwan Semiconductor Co., Ltd.	79.20	27.85	54.24%
TW:6138	Anpec Electronics Corporation	216.00	-11.88	-5.21%
TW:6719	uPI Semiconductor Corp.	163.00	-32.78	-16.74%
TW:8261	Advanced Power Electronics Corp	126.00	31.18	32.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Taiwan-Asia Semiconductor Corporation AI Stock Analysis