TSMC Announces 2022Q3 Financial Results
Recently, TSMC announced its results for 2022Q3, showing that revenue reached NT$613.14 billion, a year-on-year increase of 47.9% and a month-on-month increase of 14.8%. In dollar terms, revenue was $20.23 billion, an increase of 35.9% year-on-year and 11.4% month-on-month, in line with the original forecast of $19.8 billion to $20.6 billion.
TSMC’s net profit in the third quarter of 2022 was NT$280.87 billion, a year-on-year increase of 79.7%, and earnings per diluted share were NT$10.83 (US$1.79 per ADR unit), compared with the same period of last year, it has increased by 79.8%. If compared with the second quarter of the 2022 earnings report, the net profit in the third quarter of 2022 increased by 18.5%.
TSMC’s gross profit margin in the first quarter of 2022 was 55.6%, breaking through 55%, which is a lot higher than 53% in 2020. In the second quarter of 2022, TSMC’s gross profit margin increased to 59.1%, exceeding its original estimate of 56% to 58%. By the third quarter of 2022, TSMC’s gross profit margin exceeded 60%, reaching 60.4%, and its operating profit margin was 50.6%.
TSMC said that 5nm process shipments accounted for 28% of revenue in the third quarter of 2022, and 7nm process revenue accounted for 26%. The two add up to 54% of the sales amount, and advanced technology accounts for more than half of the revenue, an increase of 3% compared to the previous quarter. In the current definition of TSMC, 7nm or more advanced processes are called advanced processes.
TSMC expects revenue in the fourth quarter of 2022 to be in the range of $19.9 billion to $20.7 billion, with a gross margin of 59.5% to 61.5%, and operating margins ranging from 49% to 51%. Notably, TSMC cut its capital expenditure budget by $4 billion to $36 billion. Part of the reason is that TSMC has seen waning demand for its 6nm/7nm capacity.
