Despite Inflationary Pressures, Taiwan Semiconductor Records 76% Jump In Q2 Profits

Taiwan Semiconductor Manufacturing Co Ltd TSM said its second-quarter profit surged over 76% to NT$237.03 billion (equivalent to $8.06 billion). Revenue jumped 43.5% to NT$534.14 billion (~$18.2 billion), almost in line with the consensus of $18.25 billion.

The company posted EPS of NT$9.14 ($1.55 per ADR unit), beating the consensus of $1.47.

Its gross margin reached 59.1%, operating margin was 49.1%, and net profit margin was 44.4%.

In the second quarter, shipments of 5-nanometer accounted for 21% of total wafer revenue; 7- nanometer accounted for 30%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 51% of total wafer revenue.

“Our second quarter business was supported by HPC, IoT, and Automotive-related demand,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into third quarter 2022, we expect our business to be supported by continued demand for our industry-leading 5nm and 7nm technologies.”

Guidance: Taiwan Semiconductor expects Q3 FY22 sales of $19.8 billion and $20.6 billion, higher than the consensus of $19.21 billion. The company forecasts a gross profit margin of 57.5% - 59.5% and an operating profit margin of 47% - 49%.

Price Action: TSM shares are up 1.61% at $82.60 during the premarket session on the last check Thursday.