TSMC Boosts Outlook After Robust 2Q24 Performance

The latest financial results from Taiwan Semiconductor Manufacturing Company (TSMC) have exceeded expectations, prompting the company to revise its forecast for the full year. Earlier this year, chairman CC Wei had projected a low to mid-20s percentage increase in full-year revenue in US dollar terms. However, during a recent conference call with analysts, Wei updated the estimate, now predicting a revenue growth of "slightly above mid-20s percent" for 2024.

For the second quarter of 2024, TSMC reported a remarkable year-over-year revenue increase of 40.1 percent, with net income also rising by 36.3 percent. In US dollars, the revenue for 2Q24 reached $20.82 billion, marking a significant 32.8 percent increase compared to the same period last year.

Notably, the company saw a notable shift in wafer shipments during the quarter. 3nm wafers accounted for 15 percent of total wafer revenue, while 5nm wafers made up 35 percent, and 7nm accounted for 17 percent of the total. This diversification in wafer shipments reflects TSMC's commitment to advancing its cutting-edge technologies.

Wendell Huang, the Chief Financial Officer of TSMC, highlighted the factors driving the company's performance in the second quarter. "Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," said Huang in a statement. Looking ahead to the third quarter of 2024, TSMC anticipates continued strong demand for its leading-edge process technologies, particularly in the smartphone and AI sectors.

Looking forward, TSMC has provided a revenue forecast for the third quarter of 2024, ranging between US$22.4 billion and US$23.2 billion. Additionally, the company has narrowed its capital expenditure forecast for the full year to fall within the range of US$30 billion to US$32 billion. These adjustments reflect TSMC's confidence in its growth trajectory and its ability to meet the evolving demands of the semiconductor market.