TSMC Reports Second Quarter EPS of NT$4.66

Hsin­chu, Tai­wan, R.O.C., July 16, 2020 – TSMC (TWSE: 2330, NYSE: TSM) today announ­ced con­so­li­da­ted reve­nue of NT$310.70 bil­li­on, net inco­me of NT$120.82 bil­li­on, and diluted ear­nings per share of NT$4.66 (US$0.78 per ADR unit) for the second quar­ter ended June 30, 2020.

Year-over-year, second quar­ter reve­nue increased 28.9% while net inco­me and diluted EPS both increased 81.0%. Com­pared to first quar­ter 2020, second quar­ter results repre­sen­ted essen­ti­al­ly flat reve­nue, and a 3.3% increase in net inco­me. All figu­res were pre­pared in accordance with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, second quar­ter reve­nue was $10.38 bil­li­on, which increased 34.1% year-over-year and increased 0.8% from the pre­vious quarter.

Gross mar­gin for the quar­ter was 53.0%, ope­ra­ting mar­gin was 42.2%, and net pro­fit mar­gin was 38.9%.

In the second quar­ter, ship­ments of 7‑nanometer accoun­ted for 36% of total wafer reve­nue and 16-nano­me­ter accoun­ted for 18%. Advan­ced tech­no­lo­gies, defi­ned as 16-nano­me­ter and more advan­ced tech­no­lo­gies, accoun­ted for 54% of total wafer revenue.

Our second quar­ter busi­ness was sequen­ti­al­ly flat, as the con­tin­ued 5G infra­struc­tu­re deploy­ment and HPC-rela­ted pro­duct laun­ches off­set weak­ne­s­ses in other plat­forms,” said Wen­dell Huang, VP and Chief Finan­cial Offi­cer of TSMC. “Moving into third quar­ter 2020, we expect our busi­ness to be sup­port­ed by strong demand for our indus­try-lea­ding 5nm and 7nm tech­no­lo­gies, dri­ven by 5G smart­phones, HPC and IoT-rela­ted applications.”

Based on the Company’s cur­rent busi­ness out­look, manage­ment expects the over­all per­for­mance for third quar­ter 2020 to be as follows:

• Reve­nue is expec­ted to be bet­ween US$11.2 bil­li­on and US$11.5 billion;

And, based on the exch­an­ge rate assump­ti­on of 1 US dol­lar to 29.5 NT dollars,

• Gross pro­fit mar­gin is expec­ted to be bet­ween 50% and 52%;

• Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 39% and 41%.

The manage­ment fur­ther expects the 2020 capi­tal bud­get to be bet­ween US$16 bil­li­on and US$17 billion.