TSMC’s Q4 2023 Earnings Surge by 14.4%, Revealing Robust Growth

TSMC reports solid financial results for Q4 2023, with stable revenue and net income figures, driven by growth in advanced technologies and plans for continued investment and innovation.

Stable performance despite market fluctuations
Strong demand for advanced technologies, particularly 3-nanometer chips
Strategic investments for future growth and success

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has announced its financial results for the fourth quarter of 2023. Despite facing some challenges, the company achieved solid revenue and net income figures.

In terms of revenue, TSMC reported NT$625.53 billion ($19.62 billion) for the fourth quarter, representing a modest 1.5% decrease compared to the same period last year. However, there was a positive 13.6% increase from the previous quarter. These numbers indicate a relatively stable performance in the face of market fluctuations.

Net income for the quarter stood at NT$238.71 billion ($7.49 billion), reflecting a 19.3% decline year-over-year. Diluted earnings per share also experienced a similar decrease, settling at NT$9.21 ($0.29) per share. While these figures may seem concerning, it’s important to note that they were in line with the company’s expectations.

TSMC’s success can be attributed to the continued growth of its advanced technologies, particularly its 3-nanometer technology. In the fourth quarter, shipments of 3-nanometer chips accounted for 15% of total wafer revenue, indicating strong demand for this innovative solution. Additionally, 5-nanometer chips accounted for 35% of revenue, while 7-nanometer chips made up 17%.

Looking ahead to the first quarter of 2024, TSMC anticipates some challenges due to seasonal fluctuations in smartphone demand. However, this is expected to be partially offset by continued demand for high-performance computing (HPC) applications. The company remains optimistic about its prospects and is confident in its ability to navigate these market dynamics.

Based on its current business outlook, TSMC projects revenue for the first quarter of 2024 to range between $18.0 billion and $18.8 billion. Gross profit margin is expected to be between 52% and 54%, while operating profit margin is projected to be between 40% and 42%. These figures demonstrate the company’s commitment to maintaining healthy financial performance.

Looking further ahead, TSMC has set its capital budget for 2024 between $28 billion and $32 billion. This investment will enable the company to continue pushing the boundaries of semiconductor technology and meet the growing demands of its customers.

As TSMC continues to innovate and adapt to market conditions, it remains a dominant force in the semiconductor industry. Its strong financial performance and strategic investments position it well for future growth and success.

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Background Information

About TSMC: TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.