TSMC (2330.TW) Earnings Call Summary Company Overview - Company: Taiwan Semiconductor Manufacturing Company (TSMC) - Ticker: 2330.TW - Market Cap: NT$29.3 trillion / $997.4 billion - Enterprise Value: NT$27.4 trillion / $932.3 billion - 12-Month Price Target: NT$1,370.00 - Current Price: NT$1,130.00 - Upside Potential: 21.2% Key Industry Insights - Advanced Node Demand: TSMC's outlook on advanced node demand is increasingly positive, particularly driven by AI customers showing no signs of demand slowdown [2][20] - Revenue Contribution: Expected revenue contribution from N2 is anticipated to be significantly higher than N3 during the initial ramp-up stage, especially in the first two years, driven by both smartphone and HPC applications [2][21] - Capacity Management: TSMC plans to improve productivity through node conversions (e.g., N7 to N5, N5 to N3) to meet the strong demand for N5/N3 nodes [3][20] Financial Performance Highlights - 2Q25 Results: - Revenue: NT$933.8 billion, up 11.3% QoQ and 38.6% YoY [18][39] - Gross Profit: NT$547.4 billion, with a gross margin of 58.6% [18][39] - Net Income: NT$398.3 billion, EPS of NT$15.36, up 10.1% QoQ and 60.6% YoY [18][39] - 2025 Revenue Guidance: Raised to 30% YoY growth from mid-20% previously, supported by strong demand from AI and HPC applications [19][40] Pricing and Profitability - Pricing Strategy: TSMC is negotiating pricing for 2026, with expectations of a higher magnitude of price hikes due to strong demand for advanced nodes [4][23] - Gross Margin Target: Management maintains a long-term gross margin target of 53% and higher, with expectations for gross margin to reach 57.9% by 2026 [4][17][23] Future Projections - Revenue Forecasts: - 2025 Revenue: NT$3,667.9 billion (up from NT$3,581.1 billion) [6][42] - 2026 Revenue: NT$4,211.2 billion (up from NT$4,073.7 billion) [6][42] - EPS Growth: EPS estimates for 2025 have been raised to NT$60.36 from NT$56.38, reflecting a 7.1% increase [40][42] Capacity and Demand Dynamics - CoWoS Demand: Continued strong demand for CoWoS (chip on wafer on substrate) amid AI growth, with management focused on narrowing the supply-demand gap [24] - Tight Capacity Outlook: Anticipated tightness in N5 and N3 capacity over the next several years, with ongoing conversions from N7 to N5 and N5 to N3 to alleviate this [20][24] Conclusion - TSMC's strong performance in 2Q25 and positive outlook for advanced nodes, particularly driven by AI demand, positions the company favorably for future growth. The raised revenue guidance and pricing strategies indicate robust demand and operational efficiency, reinforcing the investment thesis for TSMC.
台积电_ 业绩回顾_ 2025 年二季度强劲超预期;先进制程节点需求无放缓迹象;目标价上调至新台币 1,370 元,重申买入评级-TSMC_ Earnings review_ 2Q25 strong beat; Advanced node demand shows no signs of slowdown; TP up to NT$1,370, reiterate Buy (on CL)