TSMC(TSM) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for Q1 2025 was $25,526 million, a decrease of 3.4% QoQ and an increase of 41.6% YoY[5] - Gross profit for Q1 2025 was $15,007 million, representing a gross margin of 58.8%, down from 59.0% in Q4 2024 but up from 53.1% in Q1 2024[5] - Operating income for Q1 2025 was $12,382 million, accounting for 48.5% of net revenue, compared to 49.0% in Q4 2024 and 42.0% in Q1 2024[5] - Net income for Q1 2025 was $10,972 million, a decrease of 3.7% QoQ and an increase of 60.2% YoY[5] - Earnings per share (diluted) for Q1 2025 was $0.42, compared to $0.44 in Q4 2024 and $0.27 in Q1 2024[5] - The company reported a comprehensive income of $11,942 million for Q1 2025, reflecting a 46.8% increase YoY[5] Assets and Liabilities - Total assets increased to $214.826 billion, up 6.6% quarter-over-quarter and 23.2% year-over-year[2] - Current assets reached $100.758 billion, representing 46.9% of total assets, with a year-over-year increase of 36.4%[2] - Cash and cash equivalents rose to $72.122 billion, a 12.6% increase from the previous quarter and 41.0% year-over-year[2] - Total liabilities amounted to $76.244 billion, a 6.9% increase from the previous quarter and 19.3% year-over-year[2] - Shareholders' equity attributable to the parent increased to $137.454 billion, reflecting a 6.4% quarter-over-quarter growth and 25.5% year-over-year[2] - Unappropriated earnings grew to $115.980 billion, a 6.8% increase from the previous quarter and 30.3% year-over-year[2] - Long-term investments reached $4.842 billion, up 7.9% quarter-over-quarter and 16.1% year-over-year[2] - Property, plant, and equipment totaled $102.419 billion, reflecting a 5.1% increase from the previous quarter and 11.4% year-over-year[2] - Total current liabilities increased to $42.157 billion, a 10.7% increase from the previous quarter and 36.4% year-over-year[2] Cash Flow - Cash generated from operating activities in Q1 2025 was $19,027 million, slightly up from $19,027 million in Q4 2024[8] - Cash and cash equivalents at the end of Q1 2025 were $72,839 million, an increase from $64,713 million at the beginning of the period[8] - Free cash flow increased by NT$36.48 billion to NT$294.74 billion in Q1 2025, driven by higher operating cash flow[57] Revenue and Market Insights - Management expects Q2 2025 revenue to be between US$28.4 billion and US$29.2 billion[28] - From 2024 to 2029, management anticipates a revenue increase of close to mid-20s% in US dollar terms[29] - High Performance Computing accounted for 59% of net revenue in Q1 2025, up from 53% in Q4 2024[37] - Revenue from North America represented 77% of total net revenue, while revenue from China, Asia Pacific, Japan, and EMEA accounted for 7%, 9%, 4%, and 3% respectively[40] Operational Metrics - Wafer shipments in Q1 2025 totaled 3,259 Kpcs, a decrease of 4.7% from Q4 2024 and an increase of 7.6% from Q1 2024[34] - Advanced technologies (7nm and below) accounted for 73% of total wafer revenue, with 3nm contributing 22% and 5nm contributing 36%[64] - Capital expenditures totaled US$10.06 billion in Q1 2025, down from US$11.23 billion in Q4 2024[58][59] Future Outlook and Risks - The company plans to continue investing in research and development to drive innovation and market expansion[9] - The company estimated earthquake-related losses to be approximately NT$5.3 billion, which will be recognized in Q1 2025[60] - TSMC faces significant risks including market conditions, demand and supply fluctuations, and intense competition[69] - The company cautions that actual results may differ materially from forward-looking statements due to various risk factors[69] - TSMC's ability to manage its capacity and preserve its intellectual property rights is critical for its operations[69] - The company acknowledges potential disruptions from natural disasters and unexpected events[69] Company Information - TSMC is headquartered in Hsinchu, Taiwan[67] - TSMC deployed 288 distinct process technologies and manufactured 11,878 products for 522 customers in 2024[67] - The company provides a broad range of advanced, specialty, and advanced packaging technology services[67] - TSMC's 2023 Annual Report on Form 20-F was filed with the SEC on April 18, 2024[69] - The company undertakes no obligation to update any forward-looking statement unless required by law[69]