News

TSMC Reports Third-Quarter Results

1 2 3 4 5

4.7

Andrew R. Michaud

• October 19, 2023

Taiwan Semiconductor Manufacturing Co. (TSMC) released its third-quarter results, showcasing key details about the company's performance during the period. Here's a breakdown of the highlights:

Net Profit:

TSMC's net profit for the three months ended September 30 stood at 211.0 billion New Taiwan dollars (US$6.51 billion), marking a 25% decline compared to the same period last year. This result surpassed analysts' estimates, which averaged NT$189.70 billion according to a poll conducted by S&P Global Market Intelligence.

Revenue:

The company reported a third-quarter revenue of NT$546.73 billion, reflecting an 11% decrease compared to the previous year. However, it is important to note that the revenue increased by 14% when compared to the previous quarter.

Guidance:

TSMC forecasts that its revenue for the fourth quarter will range between US$18.8 billion and US$19.6 billion, representing growth from the US$17.28 billion reported in the previous quarter. The company's Chief Financial Officer, Wendell Huang, mentioned that they expect the final quarter of 2023 to benefit from increased output using TSMC's latest 3-nanometer chip-making technology. However, TSMC acknowledges that clients' inventory correction may continue to have a dampening effect.

Margin:

The operating profit margin for the third quarter stood at 41.7%, down 8.9 percentage points year-on-year and marginally lower than the previous quarter. TSMC predicts a further decrease in the operating profit margin for the current quarter, projecting it to be between 39.5% and 41.5%.

Capital Expenditure (CAPEX):

In terms of capital expenditure, TSMC invested US$7.10 billion during the third quarter, which is a decrease from the US$8.17 billion invested in the second quarter and the US$9.94 billion invested in the first quarter.

TSMC remains focused on delivering strong performance, anticipating growth in revenue for the fourth quarter despite potential challenges related to inventory correction. The company's strategic use of advanced chip-making technology positions them well for the future.