TSMC Reports Third Quarter EPS of NT$5.30

Hsin­chu, Tai­wan, R.O.C., Oct. 15, 2020 – TSMC (TWSE: 2330, NYSE: TSM) today announ­ced con­so­li­da­ted reve­nue of NT$356.43 bil­li­on, net inco­me of NT$137.31 bil­li­on, and diluted ear­nings per share of NT$5.30 (US$0.90 per ADR unit) for the third quar­ter ended Sep­tem­ber 30, 2020.

Year-over-year, third quar­ter reve­nue increased 21.6% while net inco­me and diluted EPS both increased 35.9%. Com­pared to second quar­ter 2020, third quar­ter results repre­sen­ted a 14.7% increase in reve­nue and a 13.6% increase in net inco­me. All figu­res were pre­pared in accordance with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, third quar­ter reve­nue was $12.14 bil­li­on, which increased 29.2% year-over-year and increased 16.9% from the pre­vious quarter.

Gross mar­gin for the quar­ter was 53.4%, ope­ra­ting mar­gin was 42.1%, and net pro­fit mar­gin was 38.5%.

In the third quar­ter, ship­ments of 5‑nanometer accoun­ted for 8% of total wafer reve­nue; 7‑nanometer and 16-nano­me­ter accoun­ted for 35% and 18% respec­tively. Advan­ced tech­no­lo­gies, defi­ned as 16-nano­me­ter and more advan­ced tech­no­lo­gies, accoun­ted for 61% of total wafer revenue.

Our third quar­ter busi­ness bene­fit­ted from the strong demand for our advan­ced tech­no­lo­gies and spe­cial­ty tech­no­lo­gy solu­ti­ons, dri­ven by 5G smart­phones, HPC and IoT-rela­ted appli­ca­ti­ons,” said Wen­dell Huang, VP and Chief Finan­cial Offi­cer of TSMC. “Moving into fourth quar­ter 2020, we expect our sequen­ti­al growth to be sup­port­ed by strong demand for our indus­try-lea­ding 5‑nanometer tech­no­lo­gy, dri­ven by 5G smart­phone laun­ches and HPC-rela­ted applications.”

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

• Reve­nue is expec­ted to be bet­ween US$12.4 bil­li­on and US$12.7 billion;

And, based on the exch­an­ge rate assump­ti­on of 1 US dol­lar to 28.75 NT dollars,

• Gross pro­fit mar­gin is expec­ted to be bet­ween 51.5% and 53.5%;

• Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 40.5% and 42.5%.