TSMC's Q3 Net Profit Jumps 69%... Advanced Processes' Share of Revenue Rises
Third-quarter net profit exceeds market expectations
Taiwanese chipmaker TSMC, the world's largest contract chipmaker, reported a roughly 69% year-on-year surge in net profit in the third quarter of this year. Revenue and operating margin also exceeded the company's guidance, delivering strong results.
According to Taiwan's Economic Daily News on October 15, TSMC said its third-quarter net profit rose 68.7% year on year to 763.1 billion Taiwan dollars (approximately KRW 31.7 trillion). The figure exceeded the forecast of 746.3 billion Taiwan dollars compiled by market research firm London Stock Exchange Group (LSEG). Revenue for the same period increased 50.9% to 1.4942 trillion Taiwan dollars. Both net profit and revenue also rose quarter on quarter.
Revenue in U.S. dollar terms increased 41.2% year on year to $46.72 billion. This exceeded TSMC's previously announced third-quarter revenue guidance of $44.6 billion to $45.8 billion. Third-quarter earnings per share (EPS) also came in at 29.43 Taiwan dollars, above the market estimate of around 29 Taiwan dollars.
Profitability also surpassed market expectations. The third-quarter operating margin was 58.7%, above the upper end of the company's guidance range of 56% to 58%. The gross margin was 66.4%, within the forecast range of 65% to 67%. The net margin was 51.1%.
Revenue from advanced semiconductor processes also increased as a share of total sales. The 3-nanometer process accounted for the largest share of total wafer revenue in the third quarter, at 33%, followed by the 5-nanometer process at 28% and the 7-nanometer process at 10%. In particular, the 2-nanometer process accounted for 8% of total wafer revenue. Advanced processes at 7 nanometers and below made up 79% of revenue.
Hot Picks Today
"I Invested KRW 10 Million, Only KRW 2 Million Is Left" ... 77% Plunge Sends Retail Investors Who Piled Into Samsung Electronics and SK hynix Leveraged ETFs Crying Out
- "There's a Drink Like This?"... Chinese Beverage With "Korean" in Its Name Rakes in 85 Million Won in Monthly Sales
- "No Need to Hire a Model"... The 25-Year-Old Woman Who Entered Social Media with a Face That Cost Just 1,500 Won [AI Content: The Bright and Dark Sides] 1
- "Samsung Electronics at 70,000 won, SK hynix at 200,000 won"... Why the gloomy outlook despite 'record-breaking earnings'?
- "The leggings are all see-through. It's so embarrassing to look at," complaints prompt Lululemon to fire development staff.
TSMC is scheduled to hold an earnings briefing this afternoon to announce its business outlook.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
