Some investors doubt whether the recovery will be strong enough for the chipmaker to achieve its return on equity target.
"I'm not worried about TSMC's competitive strength,"said Vincent Lai, who helps manage the equivalent of US$865 million at HSBC Asset Management Taiwan.
"I'm concerned that the speed of recovery in the global economy will influence the company's earnings growth," he said.
Lai said he doesn't think the company will achieve a 20 percent return on equity until next year.
The company faces competition from low-cost rivals such as Shanghai-based Semiconductor Manufacturing International Corp (中芯國際集成電路), which plans to raise funds selling shares overseas next year.
It also faces a challenge from International Business Machines Corp which is building a high-end made-to-order semiconductor business. Earlier this year, TSMC lost its role as sole supplier to Nvidia Corp, when the designer of Xbox chips signed a contract with IBM.
The biggest competitive challenge for TSMC may be finding a replacement for 73-year-old Chang, seen as the father of the chip-foundry industry, investors said.
Chang has headed the company since its inception in 1987.
"Morris is a very strong guy," said Michael Ding (丁予嘉), who counts TSMC shares among equivalent of US$4.2 billion he manages for International Investment Trust Co (國際投信).
"Any successor would be very challenged," he said.
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