Taiwan Semiconductor Manufacturing Company (TSMC), established in 1987 and headquartered in Hsinchu, Taiwan, is a global leader in semiconductor manufacturing. Pioneering the pure-play foundry business model, TSMC specializes exclusively in producing its customers’ designs, steering clear of competing by designing or marketing its own semiconductor products.
TSMC’s cutting-edge technology platforms, including the 7-nanometer and 5-nanometer processes, serve a wide range of industries such as high-performance computing, smartphones, IoT, automotive, and digital consumer electronics. Their state-of-the-art facilities span Taiwan, China, and the United States, reinforcing their commitment to innovation and technological advancement.
With an unwavering dedication to R&D, TSMC strives to stay at the forefront of the industry, aiming to be the largest and most advanced technology and foundry service provider globally. Their vision is to empower tech giants worldwide through their robust, reliable, and groundbreaking semiconductor solutions.
TSMC Fiscal Q3 2024
TSMC reported outstanding fiscal Q3 2024 results, significantly exceeding forecasts. The company achieved consolidated revenue of NT$759.69 billion ($23.50 billion USD), a 36.0% year-over-year increase. Net income surged by 54.2% to NT$325.26 billion ($10.05 billion USD), with diluted earnings per share (EPS) of NT$12.54.
These results surpassed market expectations, which had forecasted revenue between $22.4 billion and $23.2 billion and profit increases around 42%.
Highlights of TSMC’s Q3 2024 Earnings:
- Revenue: NT$759.69 billion ($23.50 billion USD), up 36.0% year-over-year
- Net Income: NT$325.26 billion ($10.05 billion USD), up 54.2% year-over-year
- Diluted EPS: NT$12.54 ($1.94 per ADR unit), up 54.2% year-over-year
- Gross Margin: 57.8%
- Operating Margin: 47.5%
- Net Profit Margin: 42.8%
Guidance for Q4 2024:
- Revenue: Expected to be between $26.1 billion and $26.9 billion
- Gross Profit Margin: Expected to be between 57.0% and 59.0%
- Operating Profit Margin: Expected to be between 46.5% and 48.5%
Board Statements
During the earnings call, Wendell Huang, Senior VP and CFO of TSMC, highlighted the company’s growth and the strong demand for its industry-leading technologies. He mentioned, “Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies.” Huang also expressed optimism for the upcoming quarter, projecting revenue between US$26.1 billion and US$26.9 billion, with gross profit margins expected to be between 57.0% and 59.0%, and operating profit margins between 46.5% and 48.5%.
Impact on the Market
TSMC’s impressive Q3 results had a significant positive impact on the market. The company’s stock (TSM) surged by 13%, reflecting strong investor confidence in its future growth prospects. The robust demand for TSMC’s advanced technologies underscores the company’s pivotal role in the semiconductor industry, further solidifying its position as a market leader. The positive earnings report also contributed to the overall optimism in the tech sector, influencing market sentiment positively.
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