Friday, January 19th 2024
TSMC Reports Fourth Quarter 2023 Results, Sees a 14.4% Increase in Revenue
TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$625.53 billion, net income of NT$238.71 billion, and diluted earnings per share of NT$9.21 (US$1.44 per ADR unit) for the fourth quarter ended December 31, 2023.
Year-over-year, fourth quarter revenue was essentially flat while net income and diluted EPS both decreased 19.3%. Compared to third quarter 2023, fourth quarter results represented a 14.4% increase in revenue and a 13.1% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis. In US dollars, fourth quarter revenue was $19.62 billion, which decreased 1.5% year-over-year but increased 13.6% from the previous quarter.
Gross margin for the quarter was 53.0%, operating margin was 41.6%, and net profit margin was 38.2%.
In the fourth quarter, shipments of 3-nanometer accounted for 15% of total wafer revenue; 5-nanometer accounted for 35%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 67% of total wafer revenue.
"Our fourth quarter business was supported by the continued strong ramp of our industry-leading 3-nanometer technology," said Wendell Huang, VP and Chief Financial Officer of TSMC. "Moving into first quarter 2024, we expect our business to be impacted by smartphone seasonality, partially offset by continued HPC-related demand."
Based on the Company's current business outlook, management expects the overall performance for first quarter 2024 to be as follows:
Source:
TSMC
Year-over-year, fourth quarter revenue was essentially flat while net income and diluted EPS both decreased 19.3%. Compared to third quarter 2023, fourth quarter results represented a 14.4% increase in revenue and a 13.1% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis. In US dollars, fourth quarter revenue was $19.62 billion, which decreased 1.5% year-over-year but increased 13.6% from the previous quarter.
In the fourth quarter, shipments of 3-nanometer accounted for 15% of total wafer revenue; 5-nanometer accounted for 35%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 67% of total wafer revenue.
"Our fourth quarter business was supported by the continued strong ramp of our industry-leading 3-nanometer technology," said Wendell Huang, VP and Chief Financial Officer of TSMC. "Moving into first quarter 2024, we expect our business to be impacted by smartphone seasonality, partially offset by continued HPC-related demand."
Based on the Company's current business outlook, management expects the overall performance for first quarter 2024 to be as follows:
- Revenue is expected to be between US$18.0 billion and US$18.8 billion;
- Gross profit margin is expected to be between 52% and 54%;
- Operating profit margin is expected to be between 40% and 42%.
9 Comments on TSMC Reports Fourth Quarter 2023 Results, Sees a 14.4% Increase in Revenue
There is a lot of money in chip manufacturing if you already have the fabs but you can’t get enough business if you make your own competing chips. It’s a conflict of interest especially if you have a history of anti competitive business practices.
And this is why Intel only builds in US/EU.
Intel will be running at full blast once their 20A fabs ramp up to full speed, Fab 52 and 62 more precisely.
With 20A in 2024 and 18A in 2025, Intel closed the gap. TSMC struggle with leaving 3nm and Intel soon opens up their 18A fab in Magdeburg, Germany.
Also PowerVia is incoming. Nanometer is nothing but a marketing term these days. Thats why Intel renamed their process nodes to begin with. You can't compare different fabs and chips on nanometer alone.
Meteor Lake (Intel 4) and especially Arrow Lake (Intel 20A) vs Zen 5 (TSMC 3nm) is going to be a great battle. This will be the true next gen battle, 2024 +2025.
Intel worst days are behind -> www.techpowerup.com/forums/threads/worldwide-semiconductor-revenue-declined-11-in-2023-intel-reclaims-no-1-spot.317980/