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TSMC Beats Q1 Market Expectatons, Profits Up by Two Percent Year-on-Year

TheLostSwede

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TSMC today announced consolidated revenue of NT$508.63 billion, net income of NT$206.99 billion, and diluted earnings per share of NT$7.98 (US$1.31 per ADR unit) for the first quarter ended March 31, 2023. Year-over-year, first quarter revenue increased 3.6% while net income and diluted EPS both increased 2.1%. Compared to fourth quarter 2022, first quarter results represented an 18.7% decrease in revenue and a 30.0% decrease in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, first quarter revenue was $16.72 billion, which decreased 4.8% year-over-year and decreased 16.1% from the previous quarter. Gross margin for the quarter was 56.3%, operating margin was 45.5%, and net profit margin was 40.7%. In the first quarter, shipments of 5-nanometer accounted for 31% of total wafer revenue; 7-nanometer accounted for 20%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 51% of total wafer revenue.




"Our first quarter business was impacted by weakening macroeconomic conditions and softening end market demand, which led customers to adjust their demand accordingly" said Wendell Huang, VP and Chief Financial Officer of TSMC. "Moving into second quarter 2023, we expect our business to continue to be impacted by customers' further inventory adjustment."

Based on the Company's current business outlook, management expects the overall performance for second quarter 2023 to be as follows:
  • Revenue is expected to be between US$15.2 billion and US$16.0 billion; And, based on the exchange rate assumption of 1 US dollar to 30.4 NT dollars,
  • Gross profit margin is expected to be between 52% and 54%;
  • Operating profit margin is expected to be between 39.5% and 41.5%.

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