Taiwan Semiconductor Manufacturing Company Limited Q4 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

TSMC Q4 2024 Earnings Summary

Financial Performance

  • Q4 2024 revenue increased 14.3% quarter-over-quarter, supported by strong 3nm and 5nm demand.
  • Gross margin improved to 59%, up 1.2 points from Q3 due to utilization and productivity gains.
  • Operating margin rose to 49%, a 1.5-point Q/Q increase.
  • EPS reached NT$14.45; ROE was 36.2%.
  • Advanced technologies (7nm and below) represented 74% of wafer revenue (up from 69% in 2023 full-year).

Revenue by Platform (Q/Q)

  • HPC +19% (53% of revenue)
  • Smartphone +17% (35%)
  • IoT –15% (5%)
  • Automotive +6% (4%)
  • DCE –6% (1%)

Full-Year 2024 Highlights

  • Revenue grew 30% (USD terms) to $90B, well ahead of foundry industry growth.
  • Gross margin improved to 56.1% (+1.7 points Y/Y).
  • Operating margin reached 45.7% (+3.1 points Y/Y).
  • EPS grew 39.9% to NT$45.25.
  • Free cash flow: NT$870B; CapEx: $29.8B.

Q1 2025 Guidance

  • Revenue: $25.0B to $25.8B (down 5.5% Q/Q; up 34.7% Y/Y at midpoint).
  • Gross margin: 57% to 59%.
  • Operating margin: 46.5% to 48.5%.
  • Tax rate: 16%–17% for 2025.

Profitability Commentary

  • Q4 margin uplift driven by utilization; offset by 3nm dilution.

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Jeff Su: Good afternoon, everyone, and welcome to TSMC's Fourth Quarter 2024 Earnings Conference and Conference Call. This is Jeff Su, TSMC's Director of Investor Relations and your host for today. Today's event is being webcast live through TSMC'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 Senior Vice President and CFO, Mr. Wendell Huang, will summarize our operations in the fourth quarter 2024, followed by our guidance for the first quarter 2025. Afterwards, Mr. Huang and TSMC's Chairman and CEO, Dr. C.C. Wei, will jointly provide the company's key messages. Then we will open both the floor and the line for the question-and-answer session. 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 microphone 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 four

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