Taiwan Semiconductor Manufacturing Company Limited Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance (Q3 2023)

  • Revenue rose 13.7% quarter-over-quarter in NT$ (10.2% in USD) to USD 17.3 billion, supported by strong 3nm ramp and higher 5nm demand.
  • Gross margin increased slightly to 54.3%, up 0.2 percentage points from Q2. Improvement driven by higher utilization, partially offset by 3nm ramp dilution.
  • Operating margin declined to 41.7%, down 0.3 percentage points sequentially.
  • EPS reached TWD 8.14; ROE was 25.8%.
  • Advanced technologies (7nm and below) contributed 59% of wafer revenue.
  • Platform revenue mix Q/Q: HPC +6% (42% of revenue), Smartphone +33% (39%), IoT +24% (9%), Automotive −24% (5%), DCE −1% (2%).
  • Inventory days decreased to 96 (down 3 days); AR days increased to 35 (up 3 days).

Q4 2023 Guidance

  • Revenue expectation: USD 18.8–19.6 billion (midpoint +11.1% Q/Q).
  • Gross margin: 51.5%–53.5% (midpoint reflects 1.8 percentage point decline due to 3nm ramp dilution).
  • Operating margin: 39.5%–41.5%.

Operational & Strategic Highlights

Profitability Commentary
  • Q3 gross margin exceeded prior guidance by 80 basis points due to favorable FX.
  • TSMC maintains long-term gross margin target of 53%+, excluding FX volatility.
  • Key profitability drivers: technology leadership, cost reduction, utilization, technology mix, pricing, FX.
CapEx & Depreciation

Continue Reading

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

Upgrade to Professional
Jeff Su: This is Jeff Su, TSMC's Director of Investor Relations and your host for today. 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 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 third quarter 2023, followed by our guidance for the fourth quarter 2023. Afterwards, Mr. Huang and TSMC CEO, Dr. C. C. Wei, will jointly provide the Company's key messages. Then, we will open the line for the 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 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 the current quarter guidance. Wendell Huang: Thank you, Jeff. Good afternoon, everyone. Thank you for joining us today. My presentation will start with financial highlights for the third quarter 2023. After that, I will provide the guidance for the fourth quarter 2023. Third quarter revenue increased 13.7% sequentially in

Continue Reading

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

Upgrade to Professional