TSMC Announces 2022Q2 Financial Results: Gross profit margin exceeded expectations
TSMC announced its results for the 2022Q2, showing that revenue reached TWD 534.14 billion ($18.16 billion) which increased 36.6% year-over-year and increased 3.4% from the previous quarter.
TSMC’s net profit in the second quarter of 2022 was NT$237.03 billion, and earnings per diluted share were NT$9.14 ($1.55 per ADR unit), an increase of 76.4% compared to the same period last year. If compared with the first quarter 2022 earnings report, the net profit in the second quarter of 2022 increased by 16.9%.
TSMC’s gross profit margin in the first quarter of 2022 was 55.6%, breaking through 55%, which was a lot higher than 53% in 2020. By the second quarter of 2022, the gross profit margin increased to 59.1%, exceeding TSMC’s original estimate of 56% to 58%. In addition, the operating profit margin was 49.1% and the net profit margin was 44.4%, of which the operating profit margin also exceeded the original estimate of 45% to 47%.
TSMC said that the shipments of the 5nm process accounted for 21% of the revenue in the second quarter of 2022, and the revenue of the 7nm process accounted for 30%. The combination of the two reached 51% of the sales amount, which means that the advanced process accounted for more than half of the revenue. In the current definition of TSMC, 7nm or more advanced processes are called advanced processes.
TSMC expects Q3 2022 revenue to be between $19.8 billion and $20.6 billion (based on the exchange rate assumption of 1 US dollar to 29.7 NT dollars), gross margins ranged from 57.5% to 59.5%, and operating margins ranged from 47% to 49%.
“Our second quarter business was supported by HPC, IoT and Automotive-related demand,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into third quarter 2022, we expect our business to be supported by continued demand for our industry-leading 5nm and 7nm technologies.”
“Our second quarter business was supported by HPC, IoT and Automotive-related demand,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into third quarter 2022, we expect our business to be supported by continued demand for our industry-leading 5nm and 7nm technologies.”
