TSMC earnings report Q3 2023

Taiwan Semiconductor Producing Organization noted a 3rd-quarter earnings of 211 billion New Taiwan bucks ($6.69 billion) on Thursday as weak desire for consumer electronics persists. Even though that was the second straight quarter of profit declines, the world’s greatest contract chipmaker bested analyst expectations.

Listed here are TSMC’s third quarter final results vs . Refinitiv consensus estimates:

• Profits: 546.73 billion New Taiwan pounds ($17.28 billion), vs. NT$540.39 billion expected
• Internet profits: NT$211 billion, vs. NT$191.43 billion anticipated

TSMC reported income slipped 10.83% from a calendar year in the past to NT$546.73 billion, though web earnings fell 24.87% from a calendar year back to NT$211 billion. That compares with TSMC’s guidance for third-quarter earnings among $16.7 billion and $17.5 billion.

“Our business enterprise was supported by the robust ramp of our marketplace-main 3-nanometer technology and larger demand for 5-nanometer systems, partially offset by customers’ ongoing stock adjustment,” claimed TSMC in its earnings report.

The chip huge explained that revenue improved 13.7% in the 3rd quarter as as opposed to the 2nd quarter.

In the 2nd quarter, the Taiwanese organization documented a decrease in quarterly earnings for the initially time in 4 several years thanks to a write-up-pandemic plunge in the desire for shopper electronics like smartphones and laptops. But analysts have mentioned inventories at smartphone and computer makers are jogging down and restocking demand from customers is envisioned to decide on up.

TSMC is the top rated producer of the world’s most innovative processors. The Taiwanese agency manufactures semiconductors for organizations like Apple and Nvidia, that are typically primarily based on Arm architecture.

TSMC at this time manufactures 3-nanometer chips and options to start off 2-nanometer mass manufacturing in 2025.

Canalys facts showed that the international smartphone market slid just 1% in third quarter 2023, pointing to a slowdown in its decrease. In the next quarter, the market plummeted 11% in contrast with the exact same period a year ago.

“Bolstered by regional recoveries and new item enhance demand from customers, the smartphone industry recorded a double-digit sequential advancement in Q3, ahead of the revenue seasons,” mentioned Canalys in a Tuesday report.

The demand from customers for AI chips driven has boomed led by the proliferation of huge language versions this sort of as ChatGPT and Chinese clones. That’s bolstered the shares of TSMC, which have surged 19% so considerably this calendar year..

Previous week, the U.S. extended TSMC’s exemption from U.S. trade sanctions on China, allowing it to continue on transport superior chip machines for its operations there.

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