VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Tuesday, December 30, 2025

Stock Comparison

Taiwan Semiconductor Manufacturing Company Limited vs Cadence Design Systems, Inc.

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Taiwan Semiconductor Manufacturing Company Limited

2330 · Taiwan Stock Exchange

Market cap (USD)
SectorTechnology
CountryTW
Data as of2025-12-28
Moat score
92/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Taiwan Semiconductor Manufacturing Company Limited's moat claims, evidence, and risks.

View 2330 analysis

Cadence Design Systems, Inc.

CDNS · NASDAQ

Market cap (USD)$86.5B
SectorTechnology
CountryUS
Data as of2025-12-29
Moat score
84/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Cadence Design Systems, Inc.'s moat claims, evidence, and risks.

View CDNS analysis

Comparison highlights

  • Moat score gap: Taiwan Semiconductor Manufacturing Company Limited leads (92 / 100 vs 84 / 100 for Cadence Design Systems, Inc.).
  • Segment focus: Taiwan Semiconductor Manufacturing Company Limited has 3 segments (74% in Leading-edge Foundry (7nm and below)); Cadence Design Systems, Inc. has 3 segments (71% in Core EDA).
  • Primary market structure: Quasi-Monopoly vs Oligopoly. Pricing power: Strong vs Strong.
  • Moat breadth: Taiwan Semiconductor Manufacturing Company Limited has 7 moat types across 4 domains; Cadence Design Systems, Inc. has 8 across 3.

Primary market context

Taiwan Semiconductor Manufacturing Company Limited

Leading-edge Foundry (7nm and below)

Market

Leading-edge semiconductor foundry services (<=7nm logic process technologies)

Geography

Global

Customer

Fabless semiconductor companies, system companies, and IDMs

Role

Dedicated foundry / contract manufacturer

Revenue share

74%

Cadence Design Systems, Inc.

Core EDA

Market

Electronic design automation tools for semiconductor IC design and verification (digital, custom/analog, signoff, functional verification)

Geography

Global

Customer

Semiconductor designers (fabless and IDMs) and system companies with in-house silicon teams

Role

Tool vendor / workflow platform

Revenue share

71%

Side-by-side metrics

Taiwan Semiconductor Manufacturing Company Limited
Cadence Design Systems, Inc.
Ticker / Exchange
2330 - Taiwan Stock Exchange
CDNS - NASDAQ
Market cap (USD)
n/a
$86.5B
Sector
Technology
Technology
HQ country
TW
US
Primary segment
Leading-edge Foundry (7nm and below)
Core EDA
Market structure
Quasi-Monopoly
Oligopoly
Market share
70%-72% (reported)
29%-31% (estimated)
HHI estimate
5,165
n/a
Pricing power
Strong
Strong
Moat score
92 / 100
84 / 100
Moat domains
Supply, Network, Demand, Financial
Demand, Legal, Supply
Last update
2025-12-28
2025-12-29

Moat coverage

Shared moat types

Capex Knowhow ScaleDesign In Qualification

Taiwan Semiconductor Manufacturing Company Limited strengths

Ecosystem ComplementsBenchmark Pricing PowerScope EconomiesOperational ExcellenceKeystone Component

Cadence Design Systems, Inc. strengths

Data Workflow LockinSuite BundlingLong Term ContractsInstalled Base ConsumablesIP Choke PointService Field Network

Segment mix

Taiwan Semiconductor Manufacturing Company Limited segments

Full profile >

Leading-edge Foundry (7nm and below)

Quasi-Monopoly

74%

Mature & Specialty Foundry (16nm and above + specialty processes)

Oligopoly

26%

Advanced Packaging & 3DFabric (CoWoS, InFO, SoIC)

Oligopoly

n/a

Cadence Design Systems, Inc. segments

Full profile >

Core EDA

Oligopoly

71%

Semiconductor IP

Oligopoly

13%

System Design and Analysis

Competitive

16%

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.