Taiwan Semiconductor Clocks 36% Revenue Growth In Q3 Led By 5-Nm Tech; Slashes Capex By 10%

Taiwan Semiconductor Manufacturing Company Ltd TSM reported third-quarter revenue growth of 35.9% year-on-year to $20.23 billion, beating the consensus of $19.91 billion.
The gross profit margin expanded by 910 bps to 60.4%.
The operating profit margin increased by 940 bps to 50.6%.
Also Read: Taiwan Reasons Why It Is Futile For US And China To Harm TSMC
EPS of $1.79 per ADR beat the consensus of $1.70.
TSMC slashed its 2022 capital spending target by roughly 10% and looks to spend about $36 billion in 2022 on capital equipment, down from at least $40 billion previously, Bloomberg reports.
The shipments of 5-nm accounted for 28% of total wafer revenue; 7-nm accounted for 26%. Advanced technologies, defined as 7-nm and more advanced technologies, accounted for 54% of total wafer revenue.
"Our third quarter business was supported by strong demand for our industry-leading 5nm technologies," said Wendell Huang, VP and Chief Financial Officer of TSMC. "Moving into fourth quarter 2022, we expect our business to be flattish, as the end market demand weakens, and customers' ongoing inventory adjustment is balanced by continued ramp-up for our industry-leading 5nm technologies."
Q4 Outlook: TSMC expects revenue of $19.9 billion - $20.7 billion.
It expects a gross profit margin of 59.5% - 61.5% and operating profit margin of 49% - 51%.
Price Action: TSM shares closed higher by 1.04% at $64.11 on Wednesday.