TSMC wafer foundry leader (2330-TW)(TSM-USA) today announced (10) that November revenue rose to 222.706 billion yuan, benefiting from the continued increase in demand for 5nm from high-efficiency smartphones and computers, revenue rose 5.9% MoM, and by 50.2% year on year, a new high, the top 11 monthly cumulative revenue was 2.71331 trillion yuan, an annual increase of 44.6%. Based on financial estimates, the legal entity estimates that revenue in December will be lower than in November.
Foreign investors believe that TSMC’s November revenue will represent a short-term peak, which is expected to lead to a breakthrough in the financial forecast for this quarter and is expected to exceed the financial forecast for the full year.
TSMC estimates fourth-quarter revenue will reach $19.9-20.7 billion, converted to $1.New Taiwan dollar Calculation of 31.5 yuan,New Taiwan dollarRevenue is estimated to reach 626.85-652.05 billion yuan, which is equivalent to a quarterly increase of 2.2-6.3%, and the gross profit rate is 61.5%, and it is expected that both income and the gross profit rate reach new highs.
Due to weakening customer demand, TSMC’s 7-nanometer and 6-nanometer capacity utilization rates will decline in the fourth quarter, and the impact is expected to continue in the first half of next year. However, thanks to continued growth in demand for 5nm for smartphones and high-efficiency computing applications, and to balance the impact of continued customer inventory adjustments, fourth-quarter results are expected to be flat.
TSMC recently announced that the Arizona wafer plant in the United States has begun construction on the second phase of the project, which is expected to start producing 3-nanometer process technology in 2026. The first phase of the project currently under construction is expected to begin production of 4 nanometers in 2024. The total investment of the two phases About 40 billion dollars, one of the largest cases of foreign direct investment in US history.
As for TSMC’s US expansion, foreign investors believe this move will seriously dilute gross profit margins and return on equity (ROE), but foreign investors are also fully optimistic about the long term, which will help to meet customers’ decentralized production needs and reduce investors’ doubts about geopolitical risks.