Thursday, October 17th 2019

TSMC Reports Third Quarter Results

TSMC today announced consolidated revenue of NT$293.05 billion, net income of NT$101.07 billion, and diluted earnings per share of NT$3.90 (US$0.62 per ADR unit) for the third quarter ended September 30, 2019.

Year-over-year, third quarter revenue increased 12.6% while net income and diluted EPS both increased 13.5%. Compared to second quarter 2019, third quarter results represented a 21.6% increase in revenue and a 51.4% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, third quarter revenue was $9.40 billion, which increased 10.7% year-over-year and increased 21.3% from the previous quarter.

Gross margin for the quarter was 47.6%, operating margin was 36.8%, and net profit margin was 34.5%.

In the third quarter, shipments of 7-nanometer accounted for 27% of total wafer revenue and 10-nanometer process technology contributed 2% while 16-nanometer accounted for 22%. Advanced technologies, defined as 16-nanometer and more advanced technologies, accounted for 51% of total wafer revenue.

"Our third quarter business benefited from new product launches both in premium smartphones and high performance computing applications using TSMC's industry-leading 7-nanometer technology," said Wendell Huang, VP and Chief Financial Officer of TSMC. "We expect the strength of demand for our 7-nanometer technology will continue, driven by high-end smartphones, initial 5G deployment and HPC-related applications. Based on our current business outlook, management expects the overall performance for fourth quarter 2019 to be as follows":

• Revenue is expected to be between US$10.2 billion and US$10.3 billion;
And, based on the exchange rate assumption of 1 US dollar to 30.6 NT dollars,
• Gross profit margin is expected to be between 48% and 50%;
• Operating profit margin is expected to be between 37% and 39%
The management further expects the 2019 capital budget to be between US$14 billion and US$15 billion.
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5 Comments on TSMC Reports Third Quarter Results

Strong numbers from TSMC. 7 nm is doing very well!
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ASML beat sales estimates for the third quarter.
ASML’s revenues in Q3 2019 totaled €2.987 billion ($3.3 billion), with a net income of €627 million ($692.7 million). During the quarter, ASML sold 45 DUV and seven EUV lithography systems, as well as five used lithography systems. In total, the company sold 136 step-and-scan tools this year so far, of which 18 were EUV tools. In Q4, the company intends to ship eight EUV step-and-scan systems, bringing the total for 2019 to 30 EUV systems.
ASML’s biggest bump in the third quarter came from a total of 23 orders for Twinscan NXE EUV systems from various customers.
Officially, only TSMC and Samsung Foundry use ASML’s Twinscan NXE scanners to make chips using their N7+ and 7LPP manufacturing technologies. Both contract makers of semiconductors will expand their usage of EUV tools as they adopt new fabrication processes. Furthermore, Intel will use EUVL for its 7 nm technology that will be deployed across multiple fabs through 2021. Furthermore, companies like Samsung and SK Hynix are mulling the use of EUVL for DRAM production.
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Apple can indeed make you richer!
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mo moni
mo moni
mo moni.....

Fortunately for us shareholders, TSMC seems to be one of those companies that is smart enough to reinvest a large portion of it's profits back into the company, to fund continued R&D and advancement of the chip fab technologies......

Hopefully they can continue to increase their capacity too, to keep up with the rising demands for 7, 7+ and 7nm++ chips and/or whatever comes next, which IIRC, should be 5nm or perhaps 3nm :)

Bring on 'dem greeners, oh yea !
Posted on Reply
I can bet TSMC is selling the 7nm in tons now and the line for others to have it is growing.
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