Taiwan Semiconductor Manufacturing Company Limited Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights

  • Q3 revenue grew 11.4% quarter-over-quarter in NT terms (12% in USD), reaching USD 14.9 billion. This compares to USD 13.3 billion in Q2 2021.
  • Gross margin improved to 51.3%, up 1.3 percentage points from 50.0% in Q2 2021.
  • Operating margin increased to 41.2%, up from 39.1% in Q2.
  • EPS reached TWD 6.03; ROE was 30.7%.
  • Advanced technologies (7nm and below) accounted for 52% of wafer revenue, up from 49% in Q2.

Platform Revenue Performance (Quarter-over-Quarter)

  • Smartphone: +15%, representing 44% of revenue (vs. 42% in Q2).
  • HPC: +9%, 37% of revenue.
  • IoT: +23%, 9% of revenue.
  • Automotive: +5%, 4% of revenue.
  • DCE: -2%, 3% of revenue.

Balance Sheet and Cash Flow

  • Cash and marketable securities: TWD 976 billion (USD 35 billion).
  • Q3 operating cash flow: TWD 319 billion, including customer prepayments.
  • Capex: TWD 189 billion (USD 6.77 billion).
  • Cash balance rose from TWD 106 billion to TWD 854 billion due to customer prepayments.

Q4 2021 Guidance

  • Revenue: USD 15.4–15.7 billion (midpoint +4.5% QoQ).
  • Gross margin: 51–53%.
  • Operating margin: 39–41%.
  • Vaccine donation expense will reduce operating margin by ~1 percentage point.

Continue Reading

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

Upgrade to Professional
Jeff Su: Good afternoon, everyone and welcome to TSMC's Third Quarter 2021 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 in a 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 3rd quarter of 2021, followed by our guide for the fourth quarter of 2021. Afterward, Mr. Huang and TSMC CEO, Dr. C.C. Wei, will join and provide the Company's key messages, then we will open the line for Q&A. 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 on our press release. And now I would like to turn the call over to TSMC CFO, Mr. Wendell Huang, for the summary of operations and the current quarter guidance. Wendell Huang: Thank you, Jeff. Third-quarter revenue increased 11.4% sequentially in NT terms, or 12% in dollar terms. Our 3rd quarter business was driven by strong d

Continue Reading

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

Upgrade to Professional