April 16 news, the well-known wafer foundry TSMC announced its first quarter financial results. Both revenue and gross profit margin exceeded expectations, of which consolidated revenue was US$10.31 billion, a year-on-year increase of 45.2%. Compared with US$10.394 billion in the previous quarter, a decrease of 0.8% from the previous quarter; net profit was US$3.884 billion, a sharp increase of 90.91% compared with US$1.992 billion in the same period last year; Gross Profit was US$5.335 billion, much higher than the US$2.932 billion in the same period last year, and an increase from US$5.216 billion in the previous quarter.
( TSMC announced the first quarter financial results - data from TSMC official website)
5G is picking up, TSMC is firmly in the top ten revenue positions of the world's top ten wafer foundries in 2020 Q1
Affected by the epidemic, many companies around the world The business of every semiconductor manufacturer has been greatly affected. However, the impact of the epidemic on TSMC seems to be minimal, and it is not obvious in the financial report.
According to TSMC Vice President and Chief Financial Officer Huang Wende said that the market growth of 5G smartphones and other products has put forward more demands for high-performance computing. During Q1, advanced chip process technology (16nm and below) has brought great benefits to the company. Achieved high revenue, accounting for 55% of total wafer revenue. Among them, 7nm shipments accounted for 35% of total wafer revenue.
The domestic epidemic is now under control, and 5G smartphone products have also made a comeback from the "cold pool" in the past few months. Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, said at the press conference of the Joint Prevention and Control Mechanism of the State Council held recently that as of March 26, there were 76 5G mobile phone product types in my country, with cumulative shipments of more than 26 million units, of which 1,300 were shipped in 2020. More than 10,000 units.
The trend of 5G mobile phones is booming in China, and the same is true overseas. The shipments of 5G mobile phones are also driving the growth of related chips. As far as the current global 5G chips are concerned, Qualcomm Snapdragon X series processor , Huawei HiSilicon's Kirin and Baron series processors, Apple A series processors and other products are all produced by TSMC work, 7nm orders are pouring in.
According to the 2020 Q1 global wafer foundry revenue ranking Top 10 released by Tuoyuan Industrial Research Institute, TSMC is firmly at the top of the list, and the "King of Foundry" is well-deserved, Samsung , GlobalFoundries, United Microelectronics , SMIC , Tower Semiconductor, World Advanced Semiconductor, Power Semiconductor, Huahong Semiconductor, and Eastern Hi-Tech followed closely, ranking 2nd to 10th respectively.
(Top 10 global foundry revenue rankings in Q1 2020 - data from Tuoyuan Industrial Research Institute)
Huang Wende said that Q2 revenue in 2020 is expected to remain stable, and weak demand for mobile products will be affected by continued 5G deployment and Balanced with HPC-related product releases. Specifically, Q2 revenue is expected to be between US$10.1 billion and US$10.4 billion (based on the exchange rate assumption of US$1 to NT$30.0), gross profit margin is expected to be between 50% and 52%, and operating profit margin is expected to be between 39 % to 41%.
Previously, Citigroup Global Securities analysts believed that as the outbreak of the epidemic has increased corporate operational risks, TSMC may reduce capital expenditures by US$2 billion in 2020. The 2 billion expenditure reduction is mainly for 3nm-related business expenses. Due to insufficient supply of production equipment, TSMC was unable to upgrade the wafer factory production line, so it postponed the release date of 3nm by 6 months.
At present, TSMC 7nm process production capacity is close to full capacity, and the 5nm process has begun to proceed steadily and orderly as planned without much impact.
