TSMC Reports Third Quarter EPS Results, Expects Gross Profit Margin of Up to 59% in Q4 2024

[Nomad76]

TSMC today announced consolidated revenue of NT$759.69 billion (US$23.50 billion), net income of NT$325.26 billion (US$10.08 billion), and diluted earnings per share of NT$12.54 (US$1.94 per ADR unit) for the third quarter ended September 30, 2024. Year-over-year, third quarter revenue increased 39.0% while net income and diluted EPS both increased 54.2%. Compared to second quarter 2024, third quarter results represented a 12.8% increase in revenue and a 31.2% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, third quarter revenue was $23.50 billion, which increased 36.0% year-over-year and increased 12.9% from the previous quarter. Gross margin for the quarter was 57.8%, operating margin was 47.5%, and net profit margin was 42.8%. In the third quarter, shipments of 3-nanometer accounted for 20% of total wafer revenue; 5-nanometer accounted for 32%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 69% of total wafer revenue.

"Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3 nm and 5 nm technologies," said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. "Moving into fourth quarter 2024, we expect our business to continue to be supported by strong demand for our leading-edge process technologies."

Based on the Company's current business outlook, management expects the overall performance for fourth quarter 2024 to be as follows:

• Revenue is expected to be between US$26.1 billion and US$26.9 billion;

And, based on the exchange rate assumption of 1 US dollar to 32.0 NT dollars:

• Gross profit margin is expected to be between 57.0% and 59.0%;
• Operating profit margin is expected to be between 46.5% and 48.5%.

View at TechPowerUp Main Site | Source

 

[bonehead123]

Oh, I'm soooooo surprised.......

Said absolutely NOBODY

also, wasn't this PR already posted last week, or am I just confusered ?

 

[Nomad76]

Oh, I'm soooooo surprised.......

Said absolutely NOBODY

also, wasn't this PR already posted last week, or am I just confusered ?

Those were the preliminary results for September; these are the results for the entire third quarter, including revenue and profit expectations. However, no surprise

BTW.. 5 nm is still strong with 2 nm ramping up

"In the third quarter, shipments of 3-nanometer accounted for 20% of total wafer revenue; 5-nanometer accounted for 32%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 69% of total wafer revenue."

 

[Daven]

If you put AMD and TSMC together, revenue is at $30B per quarter. This is equivalent to the business model being pursued by Intel where they design and make their own chips but also want to make everyone else’s chips. So far that has only raised $12-13B for Intel per quarter.

Intel’s strategy is flawed because AMD and TSMC are NOT together as this would represent a HUGE conflict of interest. Intel needs to break its fabs away in order to EVER realize the amount of revenue TSMC enjoys.

 

[usiname]

If you put AMD and TSMC together, revenue is at $30B per quarter. This is equivalent to the business model being pursued by Intel where they design and make their own chips but also want to make everyone else’s chips. So far that has only raised $12-13B for Intel per quarter.

Intel’s strategy is flawed because AMD and TSMC are NOT together as this would represent a HUGE conflict of interest. Intel needs to break its fabs away in order to EVER realize the amount of revenue TSMC enjoys.

Intel's fabs work at lost, because they make huge discount for the their CPU business. If the fabs are split from the CPU business, the CPU business will work at loss. Just wait till the end of the month when Intel show their report with CPUs manufactured by TSMC. It won't be even full quarter since Arrow Lake is not released yet and Lunar Lake barely started, the next report, released in January will be even worse.

 

[Nomad76]

Intel needs to break its fabs away in order to EVER realize the amount of revenue TSMC enjoys.

I'm not seeing this happening soon, I might be 100% wrong

Let's not forget about Foxconn and its plan to build a huge fab in Mexico https://www.reuters.com/technology/...anufacturing-facility-for-nvidias-2024-10-08/

 

[Daven]

I'm not seeing this happening soon, I might be 100% wrong

Let's not forget about Foxconn and its plan to build a huge fab in Mexico https://www.reuters.com/technology/...anufacturing-facility-for-nvidias-2024-10-08/

We already have an example with AMD breaking off its fabs to form Glofo. It doesn’t have to be complicatedly analyzed anymore than that.

Intel's fabs work at lost, because they make huge discount for the their CPU business. If the fabs are split from the CPU business, the CPU business will work at loss. Just wait till the end of the month when Intel show their report with CPUs manufactured by TSMC. It won't be even full quarter since Arrow Lake is not released yet and Lunar Lake barely started, the next report, released in January will be even worse.

IFS would charge whatever it needs in order to make a profit provided its nodes are competitive with the rest of the for-hire fab industry.

Intel will become profitable again because the cost of running the fabs which makes up a huge majority of its operating costs will be gone.

 

[cvaldes]

I'm not seeing this happening soon, I might be 100% wrong

Let's not forget about Foxconn and its plan to build a huge fab in Mexico https://www.reuters.com/technology/...anufacturing-facility-for-nvidias-2024-10-08/

That is not a chip foundry. It is a manufacturing line to assemble cards, AI hardware, whatever.

Foxconn doesn't make the chips themselves. In the same way Foxconn doesn't make Apple A-series nor M-series SoCs. They get those chips (and other silicon) to assemble to make iPhones, iPads, Apple Watches, Macs, etc.

This is basically the same thing. Foxconn is setting up a facility for assembling the hardware. GPUs manufactured by TSMC plus components from other companies: MOSFETs, VRMs, HBM2, NAND, capacitors, whatever.

In the way that some contract manufacturer is assembling Nvidia's Founder Edition graphics cards, Foxconn is planning the same for enterprise AI products. As far as I can tell, Nvidia does not have enterprise AIB partners like they do for consumer graphics cards (Asus, MSI, etc.).

 

[Timbaloo]

We already have an example with AMD breaking off its fabs to form Glofo. It doesn’t have to be complicatedly analyzed anymore than that.

Why did you not add the numbers of AMD and GloFo then?