TSMC Reports Second Quarter EPS of NT$7.01

HSINCHU, Tai­wan, R.O.C., Jul. 20, 2023 — TSMC (TWSE: 2330, NYSE: TSM) today announ­ced con­so­li­da­ted reve­nue of NT$480.84 bil­li­on, net inco­me of NT$181.80 bil­li­on, and diluted ear­nings per share of NT$7.01 (US$1.14 per ADR unit) for the second quar­ter ended June 30, 2023.

Year-over-year, second quar­ter reve­nue decreased 10.0% while net inco­me and diluted EPS both decreased 23.3%. Com­pared to first quar­ter 2023, second quar­ter results repre­sen­ted a 5.5% decrease in reve­nue and a 12.2% decrease in net inco­me. All figu­res were pre­pared in accordance with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, second quar­ter reve­nue was $15.68 bil­li­on, which decreased 13.7% year-over-year and decreased 6.2% from the pre­vious quarter.

Gross mar­gin for the quar­ter was 54.1%, ope­ra­ting mar­gin was 42.0%, and net pro­fit mar­gin was 37.8%.

In the second quar­ter, ship­ments of 5‑nanometer accoun­ted for 30% of total wafer reve­nue; 7- nano­me­ter accoun­ted for 23%. Advan­ced tech­no­lo­gies, defi­ned as 7‑nanometer and more advan­ced tech­no­lo­gies, accoun­ted for 53% of total wafer revenue.

Our second quar­ter busi­ness was impac­ted by the over­all glo­bal eco­no­mic con­di­ti­ons, which dam­pened the end mar­ket demand, and led to cus­to­mers’ ongo­ing inven­to­ry adjus­t­ment,” said Wen­dell Huang, VP and Chief Finan­cial Offi­cer of TSMC. “Moving into third quar­ter 2023, we expect our busi­ness to be sup­port­ed by the strong ramp of our 3‑nanomenter tech­no­lo­gies, par­ti­al­ly off­set by cus­to­mers’ con­tin­ued inven­to­ry adjustment.”

Based on the Company’s cur­rent busi­ness out­look, manage­ment expects the over­all per­for­mance for third quar­ter 2023 to be as follows:

 

  • Reve­nue is expec­ted to be bet­ween US$16.7 bil­li­on and US$17.5 billion;

 And, based on the exch­an­ge rate assump­ti­on of 1 US dol­lar to 30.8 NT dollars,

  •  Gross pro­fit mar­gin is expec­ted to be bet­ween 51.5% and 53.5%;
  • Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 38% and 40%.