Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/threads/tsmc-reports-third-quarter-eps-of-nt-12-54.21251/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021770
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

TSMC Reports Third Quarter EPS of NT$12.54

Daniel Nenni

Daniel Nenni

Admin
Staff member
HSINCHU, Taiwan, R.O.C., Oct. 17, 2024 -- TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$759.69 billion, net income of NT$325.26 billion, and diluted earnings per share of NT$12.54 (US$1.94 per ADR unit) for the third quarter ended September 30, 2024.

Year-over-year, third quarter revenue increased 39.0% while net income and diluted EPS both increased 54.2%. Compared to second quarter 2024, third quarter results represented a 12.8% increase in revenue and a 31.2% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, third quarter revenue was $23.50 billion, which increased 36.0% year-over-year and increased 12.9% from the previous quarter.

Gross margin for the quarter was 57.8%, operating margin was 47.5%, and net profit margin was 42.8%.

In the third quarter, shipments of 3-nanometer accounted for 20% of total wafer revenue; 5- nanometer accounted for 32%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 69% of total wafer revenue.

“Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into fourth quarter 2024, we expect our business to continue to be supported by strong demand for our leading-edge process technologies.”

Based on the Company’s current business outlook, management expects the overall performance for fourth quarter 2024 to be as follows:

• Revenue is expected to be between US$26.1 billion and US$26.9 billion; And, based on the exchange rate assumption of 1 US dollar to 32.0 NT dollars, • Gross profit margin is expected to be between 57.0% and 59.0%;

• Operating profit margin is expected to be between 46.5% and 48.5%.

TSMC’s 2024 third quarter consolidated results:
(Unit: NT$ million, except for EPS)

TSMC Q3 2024.jpg


a: 3Q2024 figures have not been approved by Board of Directors
b: Based on 25,928 million weighted average outstanding shares
c: Based on 25,929 million weighted average outstanding shares
d: Based on 25,931 million weighted average outstanding shares

About TSMC
TSMC pioneered the pure-play foundry business model when it was founded in 1987, and has been the world’s leading dedicated semiconductor foundry ever since. The Company supports a thriving ecosystem of global customers and partners with the industry’s leading process technologies and portfolio of design enablement solutions to unleash innovation for the global semiconductor industry. With global operations spanning Asia, Europe, and North America, TSMC serves as a committed corporate citizen around the world.

TSMC deployed 288 distinct process technologies, and manufactured 11,895 products for 528 customers in 2023 by providing the broadest range of advanced, specialty and advanced packaging technology services. The Company is headquartered in Hsinchu, Taiwan. For more information please visit https://www.tsmc.com.

# # #

TSMC Spokesperson:
Wendell Huang
Senior Vice President and CFO Tel: 886-3-505-5901
Media Contacts:
Nina Kao
Head of Public Relations Tel: 886-3-563-6688 ext.7125036
Mobile: 886-988-239-163 E-Mail:nina_kao@tsmc.com
Ulric Kelly
Public Relations
Tel: 886-3-563-6688 ext. 7126541 Mobile: 886-978-111-503 E-Mail:ukelly@tsmc.com
 
C. C. Wei

Thank you, Wendell. Good afternoon, everyone. First, let me start with our near-term demand outlook. We concluded our third quarter with revenue of U.S. dollar $23.5 billion, above our guidance in U.S. dollar terms. Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3-nanometer and 5-nanometer technologies.

Moving into fourth quarter, we expect our business to continue to be supported by strong demand for our leading-edge process technologies. We continue to observe extremely robust AI-related demand from our customers throughout the second half of 2024, leading to increasing overall capacity utilization rate for our leading-edge 3-nanometer and 5-nanometer process technologies.

At TSMC, we define server AI processor as GPUs, AI accelerators, and CPUs performing training and inference functions, and do not include networking, edge, or on-device AI. We now forecast the revenue contribution from server AI processors to more than triple this year and account for mid-teens percentage of our total revenue in 2024. Supported by our technology leadership and broader customer base, we are well-positioned to capture the industry's growth opportunities. We now forecast our four-year revenue to increase by close to 30% in U.S. dollar terms.

Next, let me talk about our global manufacturing footprint update. TSMC's mission is to be the trusted technology and capacity provider of the global logic IC industry for years to come. All of our overseas decisions are based on our customers' needs. They value some geographic flexibility and necessary level of government support. This is also to maximize the value of our shareholders.

In Arizona, we have received strong commitment and support from our U.S. customers and the U.S. federal, state, and city governments and have made significant progress in the past several months. Our plan to build three fabs, will help create greater economies of scale, as each of our fabs in Arizona will have a clean room area that is approximately double the size of a typical logical fab. Our first fab entered engineered wafer production in April with 4-nanometer process technology, and the result is highly satisfactory with a very good yield.

This is an important operational milestone for TSMC and our customers, demonstrating TSMC's strong manufacturing capability and execution. We now expect volume production of our first fab to start in the beginning of 2025 and are confident to deliver same level of manufacturing quality and reliability from our fab in Arizona as from our fabs in Taiwan.

Our second and third fabs will utilize more advanced technologies based on our customers' needs. The second fab is scheduled to begin volume production in 2028, and our third fab will begin production by the end of the decade. Thus, TSMC will continue to play a critical and integral role in enabling our customers' success while remaining a key partner and enabler of the U.S. semiconductor industry.

Next, in Japan, thanks to the strong support from the Japan's central, prefectural, and local government, our progress is also very successful. Our first specialty technology fab has completed all process qualification. Volume production will start this quarter, and we are confident to deliver the same level of manufacturing quality and reliability from our fab in Kumamoto as from our fabs in Taiwan.

The land preparation for our second specialty technology fab in Kumamoto has already begun, and construction will begin in fourth quarter next year. This second fab will support our strategic customers for consumer, automotive, industrial, and HPC-related applications, and volume production is targeted by the end of 2027. In Europe, we have received strong commitment from the European Commission and the German federal, state, and city governments. Together with our JV partners, we held a groundbreaking ceremony in August for our specialty technology fab in Dresden, Germany.

This fab will focus on automotive and industrial applications utilizing 12, 16, fab and 28 process technologies. Volume production is scheduled to begin by the end of 2027. Under today's fragmented globalization environment, overseas fab costs are higher for everyone, including TSMC and all other semiconductor manufacturers.

Having said that, we are leveraging our fundamental competitive advantage of manufacturing technology leadership and large scale manufacturing base. Thus, TSMC will be the most efficient and cost-effective manufacturer in the region that we operate, while continuing to provide our customers with most advanced technology and scale to support their growth.

This concludes our key messages, and thank you for your attention.
 
"Now let's move on to revenue by technology. 3-nanometer process technology contributed 20% of wafer revenue in the third quarter, while 5-nanometer and 7-nanometer accounted for 32% and 17% respectively. Advanced technologies, defined as 7-nanometer and below accounted for 69% of wafer revenue. Moving on to revenue contribution by platform, HPC increased 11% quarter-over-quarter to account for 51% of our third quarter revenue. Smartphone increased 16% to account for 34%. IoT increased 35% to account for 7%. Automotive increased 6% to account for 5%. DCE decreased 19% to account for 1%."
 
According to CC Wei, the demand for N2 exceeds the demand for N3. That's an interesting development.
 
hist78 said:
According to CC Wei, the demand for N2 exceeds the demand for N3. That's an interesting development.
Click to expand...

CC said this at the TSMC Technology Symposium earlier this year. The transition between TSMC N3 and N2 is not difficult so there will be more customers moving. I was also told at the symposium that Intel did not have an N2 wafer agreement and would be moving more manufacturing back to Intel. Intel needs the wafer volumes for economy of scale so I believe this to be true.
 
Daniel Nenni said:
CC said this at the TSMC Technology Symposium earlier this year. The transition between TSMC N3 and N2 is not difficult so there will be more customers moving. I was also told at the symposium that Intel did not have an N2 wafer agreement and would be moving more manufacturing back to Intel. Intel needs the wafer volumes for economy of scale so I believe this to be true.
Click to expand...
Really hard to believe IFS can ever stand on its own, nevermind take share from TSMC if margins are so deeply negative while TSMC's are 57% and climbing. How will they ever be able to offer discounts to offset switching cost without going bankrupt if this is the situation they are already in. I understand scale is what they want/need and the thesis is. However, TSMC will always have a superior cost structure. And if Intel design is supposed to be independent and allowed to pick whatever process they want where does that leave IFS? Furthermore, why would anyone take such a risky bet going to IFS when we are clearly in such a critical moment for computing. No one can afford to fall behind by trying to save a nickel and dime here or there.
 
fansink said:
@Daniel Nenni also said TSMC FY'24 YOY Revenue was going to be 15% 🤣
Click to expand...

That was at the beginning of the year. TSMC recorded a 7.9% revenue growth in January 2024 and 11.3% growth in February so I guessed 15% for the year. I'm not a financial analyst but I do make guesses and given that context it would be hard to guess a 30%+ revenue increase.
 
Daniel Nenni said:
CC said this at the TSMC Technology Symposium earlier this year. The transition between TSMC N3 and N2 is not difficult so there will be more customers moving. I was also told at the symposium that Intel did not have an N2 wafer agreement and would be moving more manufacturing back to Intel. Intel needs the wafer volumes for economy of scale so I believe this to be true.
Click to expand...
Technology no longer a nice to have for competitive product! In the past one could get by with a marginal or lagging technology and still have relevance.

Look at Apple and others that have successful harvested leadership technology into leadership products.

Look at Intel and its sad few years in 10 and the many + compared to AMD and now how their Lunar Lake looks on N3.

Assuming I18 delivers I’d expect Intel to have customers and also for their internal products that use I18A and Intel4/3 to be competitive as well.

The superscalars, AMD, Nvidia, Qualcomm, Broadcom, and everyone else now appreciates and desires to leading edge.

The interesting question who and what backfills the older nodes, N7, and all the capacity coming online in China, Japan, and Europe.
 
Last edited:
Mooredaddy said:
Really hard to believe IFS can ever stand on its own, nevermind take share from TSMC if margins are so deeply negative while TSMC's are 57% and climbing. How will they ever be able to offer discounts to offset switching cost without going bankrupt if this is the situation they are already in. I understand scale is what they want/need and the thesis is. However, TSMC will always have a superior cost structure. And if Intel design is supposed to be independent and allowed to pick whatever process they want where does that leave IFS? Furthermore, why would anyone take such a risky bet going to IFS when we are clearly in such a critical moment for computing. No one can afford to fall behind by trying to save a nickel and dime here or there.
Click to expand...

Did Pat G say publicly that Intel design groups can choose which foundry? Or was it Bob Swan? With chiplets Intel can use 18A for the CPU/GPU and TSMC N3 or Intel 3 for the supporting chiplets if necessary but from what I have heard Intel 18A is solid for internal use moving forward. Pat G said Intel was all-in on 18A which I believe is literal.
 
Daniel Nenni said:
That was at the beginning of the year. TSMC recorded a 7.9% revenue growth in January 2024 and 11.3% growth in February so I guessed 15% for the year. I'm not a financial analyst but I do make guesses and given that context it would be hard to guess a 30%+ revenue increase.
Click to expand...
Sorry for throwing you under the bus, I'm just an antagonist by nature.
 
You must log in or register to reply here.
Back
Top