TSMC said that the gross profit margin in 2022Q1 exceeded 55%

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TSMC announced its March 2022 revenue a few days ago and preliminarily announced its revenue for the first quarter of 2022, showing that revenue reached TWD 491.08 billion, an increase of 35.5% compared to the same period in 2021. Recently, TSMC further announced various revenue data for the first quarter of 2022 and confirmed that in US dollars, the revenue for the quarter should be $17.57 billion, an increase of 36.0% year-on-year and an increase of 11.6% month-on-month.

For the first quarter ended March 31, 2022, TSMC’s net profit was TWD 202.73 billion (approximately $6.96 billion), diluted earnings per share were NT$7.82 (US$1.40 per ADR unit), an increase of 45.1% compared to the same period last year. If compared with revenue in the fourth quarter of 2021, the first quarter of 2022 saw a 12.1% increase in revenue and a 22.0% increase in net profit.

More importantly, the gross profit margin in the first quarter of 2022 was 55.6%, breaking through 55%, which was a lot higher than the 53% in 2020. In addition, the operating profit margin was 45.6% and the net profit margin was 41.3%.

It is worth mentioning that in terms of platform revenue, high-performance computing (HPC) surpassed the smartphone business for the first time, accounting for 41% and 40% of revenue, respectively. Over the past year, high-performance computing has risen more than 6 percent, while smartphones have fallen 5 percent. The remaining platforms remained generally stable, with a slight decline in IoT revenue and a slight increase in automotive-related revenue.

In the first quarter of 2022, 5nm processes accounted for 20% of total wafer revenue, 7nm processes accounted for 30%, and advanced processes accounted for half of the total wafer revenue. In the current definition of TSMC, 7nm or more advanced processes are called advanced processes. TSMC said high-performance computing and automotive-related demand was very strong in the first quarter of 2022, which it expects to continue to support its second-quarter revenue, offsetting the impact of seasonal adjustments in smartphones.


TSMC expects revenue in the second quarter of 2022 to be between $17.6 billion and $18.2 billion, with a gross margin of 56% to 58% and an operating margin of 45% to 47%.

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