Taiwan Semiconductor Manufacturing Company Ltd

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Apr 182022

Profits rise as mining is forgotten

To say that Taiwan Semiconductors (TSMC) are having a banner year is putting it mildly. But is the demand for its chips leaving crypto miners abandoned?

  • TSMC posted quarterly revenue of $17.57bn, up 16.4% from Q4 2021 and representing a market-beating 45% net profit for Q1 2022. The rise is due to increased demand for its semiconductors, which are used in smartphones, computers, and gaming tech.
  • However, the company failed to mention crypto mining. The report lists its net revenue streams as Smartphones (40%) and the, somewhat euphemistic, “High Performance Computing” (41%). Its absence contrasts with the company’s previous bullish comments about mining in its Q4 2017 report.
  • Hesitancy accompanies a commitment to high volume manufacturing. TSMC Chief Executive confirmed that TSMC N2 development was very much “on track”, using a new transistor, and was set to enter risk production in 2024 and formal production Q3/Q4 2025.
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Jan 142022

TSMC takes Q4

Taiwanese chip-making giant Taiwan Semiconductor Manufacturing Company (TSMC) has some big plans for 2022, if its latest earnings beat is anything to go by.

  • Shares lifted to a new all time high in Thursday’s intraday trading, closing up 5.26% to flirt with closing highs.
  • It showed off with its Q4 earnings beat. $1.15 in EPS topped estimates of $1.12, and revenue came in within range at $15.74bn, up 24% y-o-y.
  • Its capital budget is up to $40bn to help it combat the chip shortage, up from $30bn last in 2021 and only $14bn in 2020.
  • All of the big chip players are trying to meet demand – Intel (INTC) and Samsung (005930) have both upped their capital spending to make room for more chips, so we could soon be overrun with the tech.
  • The company’s automotive segment was the cherry on top. After growing 51% last year, it’s on track to be one of its fastest growing areas of the business, thanks to rapid electrification.
  • TSMC wants to up its game this year, forecasting up to $17.2bn in revenue for the current quarter. Can other chipmakers keep up?
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Oct 182021

Taiwan Semiconductor Manufacturing boosts market sentiment

Taiwan Semiconductor Manufacturing Company saw its shares pop 2.25% after its earnings beat estimates thanks to strong demand across all of its platforms.

Semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) on Thursday reported earnings per share of $1.08, up 17% from the same period the year before and exceeding expectations of $1.04 billion. Revenue came in at $15.7 billion on expectations of $15.4 billion, and sales were up 23% to $14.88 billion. Chief Financial Officer Wendell Huang said:

Our third quarter business was mainly supported by strong demand across all four growth platforms, which are smartphone, HPC, IoT and Automotive-related applications. Moving into fourth quarter 2021, we expect our business to be supported by strong demand for our industry-leading 5nm technology.

The earnings helped boost the S&P 500 to its best day in months, and Asian markets were trading higher too. However, Bastien Drut, chief thematic macro strategist at CPR Asset Management, thinks that the market’s earnings induced optimism could be short lived:

There is a definite possibility that markets are underpricing monetary tightening. Energy price inflation will impair growth in Europe and Asia and that will in turn impact the rest of the world.

TSMC closed Thursday up 2.25% and lifted a further 2% on Friday.
Illustration by TradingView