TSMC Announces 2022Q4 Financial Report
TSMC today announced its results for the fourth quarter of 2022, showing that revenue reached NT$625.53 billion, a year-on-year increase of 42.8% and a month-on-month increase of 2%. If calculated in US dollars, the revenue was $19.93 billion, a year-on-year increase of 26.7%, and a month-on-month decrease of 1.5%, in line with the original expected range of $19.9 billion to $20.7 billion.
TSMC’s net profit in the fourth quarter of 2022 was NT$295.9 billion, a year-on-year increase of 78%, diluted earnings per share were NT$11.41 (US$1.82 per ADR unit), an increase of 78% compared to the same period last year. If compared with the financial report in the third quarter of 2022, the net profit in the fourth quarter of 2022 increased by 5.4%.
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 rate exceed 60%, reaching 60.4%, and its operating profit rate will be 50.6%. When the time comes to the fourth quarter of 2022, TSMC’s gross profit margin continues to increase, reaching 62.2%, while its operating profit margin is 52%, which is also higher than the previous quarter, and both are higher than expected.
In the fourth quarter of 2022, shipments of 5nm process continued to grow, accounting for 32% of total revenue, 7nm process shipments were 22%, the sum of the two reached 54% of sales, and advanced technology accounted for more than half of the income. Compared with the previous quarter, the proportion of advanced technology is the same, but the 5nm process has increased, the 7nm process has decreased, and the increase and decrease of the two offset each other. At present, in the definition of TSMC, 7nm or more advanced processes are called advanced processes.
TSMC stated that weak demand in the terminal market and customer inventory adjustments inhibited TSMC’s business in the fourth quarter. After entering the first quarter of 2023, due to the still poor macroeconomic conditions, TSMC’s performance will be further affected.
TSMC expects revenue in the first quarter of 2023 to be between $16.7 billion and $17.5 billion (based on the exchange rate assumption of 1 US dollar to 30.7 NT dollars), with a gross profit margin of between 53.5% and 55.5%. Operating margins range from 41.5% to 43.5%. TSMC has cut capital expenditures in 2023, with a budget of $32 billion to $36 billion.
