Highlights

TSMC recently announced its Q3 financial results, demonstrating remarkable performance with both gross and operating margins surpassing expectations. A significant highlight is the 59.5% gross margin, the highest in 11 quarters. This exceptional achievement resulted in an after-tax profit of NT$452.3 billion, marking a substantial quarterly and annual growth. Additionally, the company posted an EPS of NT$17.44, further solidifying its market leadership.

Sentiment Analysis

• The overall sentiment surrounding TSMC's Q3 results is highly positive, driven by remarkable financial achievements.
• Investors are optimistic due to the surpassed expectations in both gross and operating margins.
• The growth in EPS has heightened confidence in TSMC's market strategies and management.

Article Text

TSMC, a leading semiconductor company, has announced its Q3 earnings for the year. The company's performance exceeded expectations due to effective cost management and improved capacity utilization, which countered the dilutive effects of increased overseas production capacity. This enabled TSMC to achieve a gross margin of 59.5%, the highest recorded in 11 quarters, and an operating margin of 50.6%. These results propelled TSMC's after-tax profit to NT$452.3 billion, indicating a 13.6% increase from the previous quarter and a 39.1% year-over-year increase.

The revenue for the third quarter was NT$989.92 billion, a rise of 6% from the last quarter and 30.3% annually. The company also reported an EPS of NT$17.44, setting new records and cementing its financial prowess in the tech industry.

For the first three quarters, TSMC reached a revenue of NT$2.762 trillion, representing a 36.4% annual increase. The gross margin for this period was 59%, up by 4.1 percentage points, while the operating margin was 49.6%, highlighting a 5.4 percentage point improvement from the previous year. TSMC's net profit after tax was NT$1.212 trillion, a dramatic increase of 51.8%, leading to an EPS of NT$46.75.

When examining revenue by process, TSMC's 3nm technology contributed 23% of the company's revenue, 5nm comprised 37%, and 7nm accounted for 14%, with other technologies making up the remainder. From an application standpoint, high-performance computing led with a 57% share, followed by smartphones at 30%, and IoT and automotive electronics each at 5%, with consumer electronics at 1% and other sources contributing about 2%.

Key Insights Table