TSMC (NYSE:TSM) reported Q2 net income of $4B (+81% Y/Y).
Total sales were up 34% Y/Y to $10.38B.
The company lifted its FY revenue growth forecast from "mid to high single digit percentage" to 20%.
Increased demand for computer and gaming equipment due to sheltering, 5G build, and Apple's incoming iProducts.
TSMC added another $1B to its capital budget, bringing the total to $17B for 2020.
TSM shares are up 0.2% pre-market to $66.20.
Q3 Guidance: Revenue $11.2B-11.5B vs. consensus of $10.77B; GM 50-52%; Operating margin 39-41%.
FY20 capital budget to be $16B-$17B.
TSMC's figure implies foundry CAPEX could grow 20%+ this year, above the firm's modeled 13% foundry WFE growth.
TSMC's increased CAPEX is in preparation for 2021 demand.
TSMC raised 2020 revenue forecast to top 20% growth.
Asked how the Huawei ban would impact TSMC’s ability to fill up its multi-billion dollar factories:
The supply chain will adjust, Chief Executive Officer C.C. Wei told investors bluntly.
Chairman Mark Liu said that the company is progressing well in using any capacity left open. He’s putting his money where his mouth is. The company will now add another $1 billion for spending on new equipment in its 2020 plan, taking the budget as high as $17 billion." (Bloomberg).
Total sales were up 34% Y/Y to $10.38B.
The company lifted its FY revenue growth forecast from "mid to high single digit percentage" to 20%.
Increased demand for computer and gaming equipment due to sheltering, 5G build, and Apple's incoming iProducts.
TSMC added another $1B to its capital budget, bringing the total to $17B for 2020.
TSM shares are up 0.2% pre-market to $66.20.
Q3 Guidance: Revenue $11.2B-11.5B vs. consensus of $10.77B; GM 50-52%; Operating margin 39-41%.
FY20 capital budget to be $16B-$17B.
TSMC's figure implies foundry CAPEX could grow 20%+ this year, above the firm's modeled 13% foundry WFE growth.
TSMC's increased CAPEX is in preparation for 2021 demand.
TSMC raised 2020 revenue forecast to top 20% growth.
Asked how the Huawei ban would impact TSMC’s ability to fill up its multi-billion dollar factories:
The supply chain will adjust, Chief Executive Officer C.C. Wei told investors bluntly.
Chairman Mark Liu said that the company is progressing well in using any capacity left open. He’s putting his money where his mouth is. The company will now add another $1 billion for spending on new equipment in its 2020 plan, taking the budget as high as $17 billion." (Bloomberg).
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