Financial Data and Key Metrics - Q3 2024 revenue increased 12.8% sequentially in NT, driven by strong smartphone and AI-related demand for 3nm and 5nm technologies [4] - Gross margin increased by 4.6 percentage points sequentially to 57.8%, reflecting higher capacity utilization and cost improvements [4] - Operating margin increased by 5 percentage points sequentially to 47.5%, with EPS at 12.54 NT and ROE at 33.4% [5] - Cash and marketable securities stood at 2.2 trillion NT ($69 billion USD) at the end of Q3 2024 [6] - Q4 2024 revenue guidance is between $26.1 billion and $26.9 billion USD, representing a 13% sequential increase or 35% YoY increase at the midpoint [7] Business Line Data and Key Metrics - 3nm process technology contributed 20% of wafer revenue in Q3, while 5nm and 7nm accounted for 32% and 17% respectively [5] - Advanced technologies (7nm and below) accounted for 69% of wafer revenue [5] - HPC revenue increased 11% QoQ to account for 51% of Q3 revenue, while smartphone revenue increased 16% to account for 34% [5] - IoT revenue increased 35% to account for 7%, and automotive revenue increased 6% to account for 5% [5] Market Data and Key Metrics - AI-related demand, particularly for server AI processors, is expected to more than triple in 2024, accounting for mid-teens percentage of total revenue [11] - The company forecasts four-year revenue to increase by close to 30% in USD terms [11] - Overseas fabs in Arizona and Japan are progressing well, with volume production expected to start in 2025 and 2027 respectively [12][13][14] Company Strategy and Industry Competition - TSMC plans to invest slightly over $30 billion USD in 2024 CapEx, with 70%-80% allocated for advanced process technologies [9] - The company is leveraging its manufacturing technology leadership and large-scale manufacturing base to remain cost-effective in a fragmented globalization environment [15] - TSMC is expanding its global manufacturing footprint, with fabs in Arizona, Japan, and Germany, to meet customer needs and maximize shareholder value [12][13][14] Management Commentary on Operating Environment and Future Outlook - Management views AI demand as real and sustainable, driven by tangible ROI benefits from AI applications in productivity and efficiency [20][21] - The company expects strong demand for leading-edge process technologies to continue into Q4 2024 and beyond [10][11] - TSMC is confident in its ability to deliver the same level of manufacturing quality and reliability from overseas fabs as from its fabs in Taiwan [12][13] Other Important Information - Inventory days increased by four days to 87 days due to the pre-build of N3 and N5 wafers [6] - Electricity prices in Taiwan have risen significantly, with a 14% increase in October 2024, impacting gross margin by at least 1% [34] - Advanced packaging is expected to grow faster than the corporate average, accounting for high single-digit revenue in 2024 [75] Q&A Session Summary Question: AI Demand and Semiconductor Cycle - Management believes AI demand is real and sustainable, driven by productivity gains and efficiency improvements [20][21] - The semiconductor cycle is expected to continue growing, with AI demand just beginning and expected to last for many years [24][25] Question: CapEx Growth - TSMC expects 2025 CapEx to be higher than 2024, driven by strong growth opportunities and healthy demand [28] Question: Gross Margin Outlook for 2025 - Factors impacting 2025 gross margin include reduced dilution from N3 ramp, higher electricity prices, and preparation costs for N2 [33][34] Question: Pricing Strategy and Antitrust Concerns - TSMC views its customers and suppliers as partners and does not see antitrust concerns due to its market share [44][45][48] Question: IDM Outsourcing Opportunities - TSMC is not interested in acquiring IDM fabs but continues to receive business from IDMs, including Intel [53] Question: Long-Term Growth Outlook - TSMC expects healthy growth over the next five years, driven by strong AI demand and advanced technologies [57][62] Question: Power Challenges and Nuclear Power - TSMC is working closely with the Taiwanese government to ensure sufficient electricity, water, and land for its fabs, but has not yet considered nuclear power [68] Question: PC and Mobile Demand - PC and smartphone demand is expected to grow at a low single-digit rate, with AI-related content driving silicon area growth [72] Question: Advanced Packaging Growth - Advanced packaging is expected to grow faster than the corporate average, with margins approaching but not yet at corporate levels [75] Question: Dividend Policy and Capital Allocation - TSMC's dividend policy is sustainable and steadily increasing, with a focus on organic growth and shareholder returns [78][79] Question: Foundry 2.0 Model - Advanced packaging and leading process nodes are expected to drive stronger growth within the Foundry 2.0 model [82] Question: Global Semiconductor Revenue Forecast - TSMC's forecast for global semiconductor revenue remains unchanged, with growth expected to be around 10% [86] Question: CoWoS Capacity Build - CoWoS capacity is being aggressively expanded, but customer demand still exceeds supply [91]

Taiwan Semiconductor Manufacturing Company just reported a 54% rise in third-quarter net profit.TSMC's growth was driven by strong demand for artificial intelligence technology.But the market is questioning whether the euphoria over AI and AI chips is sustainable. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a persona ...

In this articleAn image of a semiconductor wafer at the Taiwan Semiconductor Manufacturing Museum of Innovation in Hsinchu, Taiwan, on Jan. 11, 2022.Taiwan Semiconductor Manufacturing Company on Thursday reported a 54% hike in net profit, as global chipmakers continue to benefit from demand boosted by AI applications.The company's net income was 352.3 billion Taiwanese dollars ($10.1 billion) over the July-September quarter, surpassing an LSEG estimate of $300.2 billion Taiwanese dollars cited by Reuters.TS ...

Unleash Innovation Unleash Innovation 2024 Third Quarter Earnings Conference October 17, 2024 © 2024 TSMC, Ltd 0 TSMC Property Agenda • 3Q24 Financial Results and 4Q24 Outlook Wendell Huang, CFO • Q&A Unleash Innovation • Welcome Jeff Su, IR Director • Key Messages Wendell Huang, CFO C.C. Wei, Chairman & CEO © 2024 TSMC, Ltd 1 TSMC Property Unleash Innovation Safe Harbor Notice • TSMC's statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and a ...

Earnings season is bringing investors the most awaited stock market results, this time not only the banking sector’s status and trends but also the semiconductor and chipmaking niche of the technology sector. Last quarter, investors gathered around the country to watch earnings results from some of the biggest names in the space to decide whether to buy or sell.Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$188.94 +1.81 (+0.97%) 52-Week Range$84.95▼$194.25Dividend Yield1.04%P/ ...

Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is scheduled to report third-quarter 2024 results on Oct. 17.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Taiwan Semiconductor is likely to record yet another strong financial performance this time around, driven by rising investments in artificial intelligence (AI). With its advanced product portfolio, the company is likely to have capitalized on the demand for high-performance computing and smartphone applications.Click here ...

Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is scheduled to report third-quarter 2024 results on Oct. 17.The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.74 per share, which implies growth of 34.9% from the year-ago quarter’s reported number. The estimate has been revised upward by a couple of cents over the past 60 days.Image Source: Zacks Investment ResearchTaiwan Semiconductor expects revenues to be between $22.4 billion and $23.2 billion, and the Zacks Consensus Estimate ...

Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) has become a new poster boy on the global artificial intelligence (AI) frenzy. The company is the largest manufacturer of AI-based chipsets for the world’s best AI chipset developers.TSM provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.Solid Q3 Outlook of TSM StockOn Oct 9, Taiwan Semiconduct ...

Chip manufacturing capabilities are obviously remaining very much in high demand, and this is the conclusion we can draw from the early release of net sales figures for the third quarter of Taiwan Semiconductor Manufacturing Company Limited (A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the ind ...

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