TSMC Reports Fourth Quarter 2023 Results, Sees a 14.4% Increase in Revenue

[TheLostSwede]

TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$625.53 billion, net income of NT$238.71 billion, and diluted earnings per share of NT$9.21 (US$1.44 per ADR unit) for the fourth quarter ended December 31, 2023.

Year-over-year, fourth quarter revenue was essentially flat while net income and diluted EPS both decreased 19.3%. Compared to third quarter 2023, fourth quarter results represented a 14.4% increase in revenue and a 13.1% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis. In US dollars, fourth quarter revenue was $19.62 billion, which decreased 1.5% year-over-year but increased 13.6% from the previous quarter.




Gross margin for the quarter was 53.0%, operating margin was 41.6%, and net profit margin was 38.2%.

In the fourth quarter, shipments of 3-nanometer accounted for 15% of total wafer revenue; 5-nanometer accounted for 35%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 67% of total wafer revenue.

"Our fourth quarter business was supported by the continued strong ramp of our industry-leading 3-nanometer technology," said Wendell Huang, VP and Chief Financial Officer of TSMC. "Moving into first quarter 2024, we expect our business to be impacted by smartphone seasonality, partially offset by continued HPC-related demand."

Based on the Company's current business outlook, management expects the overall performance for first quarter 2024 to be as follows:

• Revenue is expected to be between US$18.0 billion and US$18.8 billion;

And, based on the exchange rate assumption of 1 US dollar to 31.1 NT dollars,

• Gross profit margin is expected to be between 52% and 54%;
• Operating profit margin is expected to be between 40% and 42%.

The management further expects the 2024 capital budget to be between US$28 billion and US$32 billion.

View at TechPowerUp Main Site | Source

 

[Daven]

Almost $20B in revenue and 50% gross margins. This is the kind of money and margins Intel was making four years ago but no longer. Chip manufacturing is hot right now as there are so many companies making fantastic hardware for a diverse array of applications. This is different than the past when it was one company (Intel) making chips just for desktops, laptops and servers.

There is a lot of money in chip manufacturing if you already have the fabs but you can’t get enough business if you make your own competing chips. It’s a conflict of interest especially if you have a history of anti competitive business practices.

 

[las]

Almost $20B in revenue and 50% gross margins. This is the kind of money and margins Intel was making four years ago but no longer. Chip manufacturing is hot right now as there are so many companies making fantastic hardware for a diverse array of applications. This is different than the past when it was one company (Intel) making chips just for desktops, laptops and servers.

There is a lot of money in chip manufacturing if you already have the fabs but you can’t get enough business if you make your own competing chips. It’s a conflict of interest especially if you have a history of anti competitive business practices.

Apple is the main reason TSMC does well and Apple will be rushing to use Intel when they regain process leadership in the coming years. They said this multiple times. They want chip production out of Asia region. Simply too unreliable.

And this is why Intel only builds in US/EU.

Intel will be running at full blast once their 20A fabs ramp up to full speed, Fab 52 and 62 more precisely.

With 20A in 2024 and 18A in 2025, Intel closed the gap. TSMC struggle with leaving 3nm and Intel soon opens up their 18A fab in Magdeburg, Germany.

Also PowerVia is incoming. Nanometer is nothing but a marketing term these days. Thats why Intel renamed their process nodes to begin with. You can't compare different fabs and chips on nanometer alone.

Meteor Lake (Intel 4) and especially Arrow Lake (Intel 20A) vs Zen 5 (TSMC 3nm) is going to be a great battle. This will be the true next gen battle, 2024 +2025.

Intel worst days are behind ->

Worldwide Semiconductor Revenue Declined 11% in 2023, Intel Reclaims No. 1 Spot

Worldwide semiconductor revenue in 2023 totaled $533 billion, a decrease of 11.1% from 2022, according to preliminary results by Gartner, Inc. "While the cyclicality in the semiconductor industry was present again in 2023, the market suffered a difficult year with memory revenue recording one...

www.techpowerup.com

 

[Daven]

Apple is the main reason TSMC does well and Apple will be rushing to use Intel when they regain process leadership in the coming years. They said this multiple times. They want chip production out of Asia region. Simply too unreliable.

And this is why Intel only builds in US/EU.

Intel will be running at full blast once their 20A fabs ramp up to full speed, Fab 52 and 62 more precisely.

With 20A in 2024 and 18A in 2025, Intel closed the gap. TSMC struggle with leaving 3nm and Intel soon opens up their 18A fab in Magdeburg, Germany.

Also PowerVia is incoming. Nanometer is nothing but a marketing term these days. Thats why Intel renamed their process nodes to begin with. You can't compare different fabs and chips on nanometer alone.

Meteor Lake (Intel 4) and especially Arrow Lake (Intel 20A) vs Zen 5 (TSMC 3nm) is going to be a great battle. This will be the true next gen battle, 2024 +2025.

Intel worst days are behind ->

Worldwide Semiconductor Revenue Declined 11% in 2023, Intel Reclaims No. 1 Spot

Worldwide semiconductor revenue in 2023 totaled $533 billion, a decrease of 11.1% from 2022, according to preliminary results by Gartner, Inc. "While the cyclicality in the semiconductor industry was present again in 2023, the market suffered a difficult year with memory revenue recording one...

www.techpowerup.com

This can only happen if Intel divests its chip design business. There will be too much pressure from the Intel board to copy and sabotage clients of IFS.

 

[las]

This can only happen if Intel divests its chip design business.

Think about what I said when you see Apple switching to Intel foundries in a few years when their contracts with TSMC are over

 

[marios15]

Think about what I said when you see Apple switching to Intel foundries in a few years when their contracts with TSMC are over

You are not trying hard enough to make a narrative that will push those Intel stocks you own higher.

 

[las]

You are not trying hard enough to make a narrative that will push those Intel stocks you own higher.

Not really trying

 

[Daven]

Think about what I said when you see Apple switching to Intel foundries in a few years when their contracts with TSMC are over

From Apple’s lips to god’s ears.

Not really trying

Unless you bought Intel stock in the last year, you have lost money on it. Intel stock is down 0.64% from 5 years ago today so basically flat. AMD stock is up 641.77% from 5 years ago. Nvidia is up 1,326.25% from 5 years ago today. Intel stock is doing very, very badly. The sole reason: they missed the AI trend.

 

[bonehead123]

AMD stock is up 641.77% from 5 years ago. Nvidia is up 1,326.25% from 5 years ago today

Yep, these, as well as TSMC and a few other tech stocks I own, are doing very well right now, but I will take my coins to the bank however & whenever I can

 

[Flyordie]

Glad I bought AMD at $1.82/share. lol