Taiwan Semiconductor Manufacturing Company Limited Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue: NT$310.7 billion (US$10.4 billion), flat sequentially and in line with guidance.
  • Gross margin: 53%, up 1.2 ppts from Q1 due to high utilization and absence of inventory valuation adjustments, partially offset by NT$ appreciation.
  • Operating margin: 42.2%, up 0.8 ppts from Q1.
  • EPS: NT$4.66.
  • ROE: 28.5%.
  • Cash & marketable securities: NT$605 billion; cash balance increased NT$37 billion.
  • CapEx in Q2: NT$127 billion (US$4.2 billion).

Platform Revenue Performance (QoQ)

  • Smartphones: -4% (47% of revenue).
  • HPC: +12% (33% of revenue).
  • IoT: -5% (8% of revenue).
  • Automotive: -13% (4% of revenue).
  • DCE: -9% (5% of revenue).

Technology Mix

  • 7nm: 36% of wafer revenue.
  • 16nm: 18% of wafer revenue.
  • Advanced technologies (16nm and below): 54% of wafer revenue.

Operational Metrics

  • Accounts receivable days: 44 (up 2 days).
  • Inventory days: 55 (up 2 days), driven by N5 ramp and N7 demand.
  • Cash from operations: NT$170+ billion.

Q3 2020 Guidance

  • Revenue: US$11.2B–US$11.5B (midpoint +9.3% QoQ).
  • Gross margin: 50%–52%.
  • Operating margin: 39%–41%.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Jeff Su: Ladies and gentlemen, welcome to TSMC's Second Quarter 2020 Earnings Conference Call. This is Jeff Su, TSMC's Director of Investor Relations and your host for today. To prevent the spread of COVID-19, TSMC is hosting our earnings conference call via live audio webcast through the Company's website at www.tsmc.com, where you can also download the earnings release materials. If you are joining us through the conference call, your dial-in lines are listen-only mode. The format for today's event will be as follows. First, TSMC's Vice President and CFO, Mr. Wendell Huang, will summarize our operations in the second quarter 2020, followed by our guidance for the third quarter 2020. Afterwards, Mr. Huang, and TSMC's CEO, Dr. C. C. Wei, will jointly provide the Company's key messages. Then TSMC's Chairman, Dr. Mark Liu will host a Q&A session, where all three executives will entertain your questions. As usual, I would like to remind everybody that today's discussions may contain forward-looking statements that are subject to significant risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the Safe Harbor notice that appears in our press release. And now, I would like to turn the call over to TSMC's CFO, Mr. Wendell Huang for the summary of operations and current quarter guidance. Wendell Huang: Thank you, Jeff. Good afternoon, everyone. Second quarter revenue was flat sequentiall

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional