2022 World Semiconductor Conference TSMC Exhibition Area (Source: Titanium Media App Editor and Photographed)
Titanium Media App On October 14, TSMC (TPE: 2330/NYSE: TSM), the leader in wafer foundry, released its third-quarter financial report on Thursday (October 13).
financial report shows that TSMC achieved revenue of NT$613.14 billion in the third quarter of NT$4 NT$5 (approximately RMB 139 billion), a year-on-year increase of 47.9%; net profit was NT$280.87 billion, a year-on-year increase of 79.7%. In the quarter, TSMC's advanced processes revenue accounted for 54% of the quarter.
TSMC President Wei Zhejia said at the company's third-quarter performance meeting that after preliminary evaluation, the impact of the new U.S. government export control regulations on TSMC is limited and controllable. He revealed that the company's factory in Nanjing has been authorized by the US government for one year, including 28nm and 16nm production lines. Chip production equipment can continue to be purchased from US suppliers within the year. In terms of the specific financial report of
, , from the perspective of revenue sources, TSMC's smartphone business revenue accounted for 41% in the third quarter, a month-on-month increase of 25%; high-performance computing business (HPC) revenue accounted for 39%, a quarter-on-quarter increase of 4%; Internet of Things business revenue increased by 33% to 10%. In terms of
, revenue from North American customers accounted for 72% of total revenue, higher than 64% in the second quarter, and revenue from mainland China accounted for 8%, lower than 13% in the last quarter. In terms of
process sales, TSMC's 5nm semiconductor shipments account for 28% of total revenue, 7nm accounts for 26%, and 16nm accounts for 12%, accounting for a total of 66%. Wei Zhejia said that due to the decline in demand for some customers such as mobile phones and personal computers, the 7nm and 6nm process casting in the fourth quarter was delayed, and the capacity utilization rate was estimated to take several quarters to return to the past level, which will continue until the first half of 2023.
At the same time, TSMC announced that it would lower its annual capital expenditure to US$36 billion, which is another reduction in capital expenditure forecast after the first downward revision three months ago, a decrease of 18.1% from the previous estimate of US$40 billion to US$44 billion, and said it is still too early to talk about the scale of capital expenditure next year. It is regarded by the market as an important signal of the slowdown in the semiconductor market in 2023.
Regarding the reason, Wei Zhejia said that half of it is due to the current medium-term outlook for capacity optimization, and the other half is due to the continued challenges in semiconductor equipment delivery. He pointed out that the semiconductor supply chain continues to sell inventory, and the expected inventory level has peaked in the third quarter and will be able to fall this quarter, but the inventory adjustment may continue until the first half of next year. Although demand in the consumer market is weak, with the stable support of data center and automotive electronics demand, it is expected that the fourth quarter operation will remain stable.
talked about whether to adjust the overseas expansion layout. Wei Zhejia responded that the investment plans for factories in the United States, Japan, Nanjing and Kaohsiung will be carried out according to the plan. As for factory establishment in Europe, no possibility will be ruled out, and it will depend on customer needs, business opportunities, operating efficiency and costs. Previously, there was news that TSMC is considering setting up a factory in the area of Dresden (Dresden) in Germany.
For the new round of export control measures in the United States, TSMC Nanjing factory has obtained a one-year license from the U.S. Department of Commerce. TSMC told Titanium Media App that under the principle of following relevant regulations, the expansion of production operations of Nanjing factory (28nm mature process) will be carried out according to the plan. , but TSMC declined to comment on whether the titanium media app will continue to be executed on the topic of whether the orders of domestic AI ( artificial intelligence ) chip design companies will continue to be implemented.
It is reported that Biren Technology, Tianshu Intelligent Core, and Horizon's foundry orders at TSMC are still operating. According to Mark Li, an analyst at the research firm Sanford C. Bernstein, the US export control measures on AI and supercomputing chips are estimated to have an impact on TSMC's revenue in 2023. Even if further escalation is made, it may hit 5% of TSMC's 2023 revenue in the worst case.
storage security expert Marco Mezger said on social media that companies such as TSMC, , Samsung, and can still produce products in China. He does not think this situation will cause major changes due to the new US policy. There are large shares of factories and global output, and the world relies on these factories and shares.
In fact, due to the external economic environment, TSMC's stock price has plummeted, and has fallen by nearly 36% this year.
TSMC expects revenue in the fourth quarter to be approximately US$19.9 billion to US$20.7 billion, and gross profit margin and net profit margin will remain high compared with the third quarter. In US dollars, TSMC's revenue is still expected to grow 34% to 36% this year.
Looking ahead, Wei Zhejia believes that the semiconductor industry may decline in 2023, but for TSMC, it will still be a year of revenue growth and will continue to maintain a high growth trend. With HPC applications driving demand for advanced processes, TSMC's annual compound growth rate (CAGR) is expected to reach 15% to 20% in the next few years.
Morningstar said in a research report that TSMC's stock price was undervalued due to the growth of AI, the Internet of Things and HPC, and its performance growth is expected to "may last for decades."
was affected by positive performance, and TSMC ADR closed up 3.92% in the early morning. As of press time, TSMC rose more than 4% in the early trading on Friday (October 14), better than the Taipei stock market market . (This article was first published on Titanium Media App, author | Lin Zhijia)
