Taiwan Semiconductor Manufacturing Co. (TSMC) (TWSE: 2330, NYSE: TSM) announced consolidated revenue of NT$673.51 billion and net income of NT$247.85 billion for the second quarter ended June 30, 2024. The diluted earnings per share (EPS) stood at NT$9.56 (US$1.48 per ADR unit).
The company reported a significant year-over-year revenue increase of 40.1%, with net income and diluted EPS both rising by 36.3%. Compared to the first quarter of 2024, revenue and net income grew by 13.6% and 9.9%, respectively. In US dollar terms, second-quarter revenue reached $20.82 billion, marking a 32.8% year-over-year increase and a 10.3% rise from the previous quarter.
TSMC’s gross margin for Q2 was 53.2%, with an operating margin of 42.5% and a net profit margin of 36.8%. Advanced technologies, defined as 7-nanometer and more advanced, contributed 67% to the total wafer revenue. Specifically, 3-nanometer technology accounted for 15% of total wafer revenue, while 5-nanometer and 7-nanometer technologies accounted for 35% and 17%, respectively.
“Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality,” stated Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into the third quarter of 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies.”
Looking ahead, TSMC forecasts third-quarter revenue to be between US$22.4 billion and US$23.2 billion. The company anticipates a gross profit margin of 53.5% to 55.5% and an operating profit margin of 42.5% to 44.5%, based on an exchange rate assumption of 1 US dollar to 32.5 NT dollars.
TSMC remains optimistic about its market position and the continuing demand for its advanced semiconductor technologies.
