TSMC Announces 2022Q1 Revenue: Revenue nearly $17 billion, up 35.5% year over year

In the past year or so, the global demand for various chips has been so high that major wafer foundries have raised their quotations for chip manufacturing, and the prices of different process nodes have risen many times. As the world’s largest wafer foundry, TSMC has an absolute advantage in production capacity and has technologies that its competitors cannot provide. TSMC’s performance in the first quarter of 2022 hit an all-time high as production capacity and quotations continued to increase.
TSMC 2022Q1 Revenue

According to the latest financial report released by TSMC, revenue in March 2022 was NT$171.97 billion (approximately $5.93 billion), an increase of 17% compared to February 2022 and a 33.2% increase compared to March 2021. This brings TSMC’s revenue in the first quarter of 2022 to NT$491.08 billion (approximately $16.93 billion), an increase of 35.5% compared to the same period in 2021.

TSMC’s revenue exceeded many analysts’ expectations. Although TSMC did not announce the gross profit margin, it was previously expected to be between 53% and 55%, which is higher than the historical gross profit margin of TSMC in the past. Usually, chip design companies tend to increase orders from the end of the first quarter to the beginning of the second quarter, which is generally reflected in TSMC’s third and fourth-quarter revenue.

In addition to the huge capacity advantage and price increase, TSMC’s N5 and N7 process technology ahead of its competitors is another important factor driving its performance. At present, these two process nodes account for about half of TSMC’s revenue. Among them, the N5 process technology has been almost monopolized by Apple for nearly two years. As a large number of chip companies such as AMD, MediaTek and Nvidia have begun to place orders at this process node, it is expected to promote the growth of TSMC’s revenue in the next stage.