TSMC Reports Strong Q2 Earnings with Industry-Leading Technologies and Growth Plans

In the Q2 earnings call, TSMC reported strong demand for their industry-leading three- and five-nanometer technologies, resulting in a 13.6% increase in revenue for the quarter. The company’s focus on advanced technology, such as seven-nanometer and below, contributed to 67% of wafer revenue in the second quarter. TSMC also highlighted their capacity planning process, stating they are preparing for strong growth in 2024 and beyond, particularly in response to rising demand for AI-related technologies.

TSMC’s CFO, Wendell Huang, addressed the company’s profitability, noting a sequential increase in gross margin to 53.2% and an improvement in operating margin to 42.5%. He emphasized the company’s financial discipline in managing costs and increasing productivity to drive profitability. The company also provided guidance for the third quarter of 2024, projecting a 9.5% sequential increase in revenue and continued margin improvement.

Furthermore, TSMC discussed its future technology roadmap, including the development of two-nanometer and 16-nanometer technologies. These advancements are expected to further extend the company’s technology leadership position and capture growth opportunities in the AI and high-performance computing segments. TSMC is focused on continuing to invest in capacity expansion to meet the growing demand for advanced semiconductor technologies.