[News] TSMC Holds Earnings Conference on the 19th, Market Focuses on Six Key Areas

2023-10-03 Semiconductors editor

According to a report by Taiwan’s Economic Daily, TSMC is set to hold its Q3 earnings conference on October 19th. The market is eagerly anticipating insights from the company’s top executives on six key areas: the latest semiconductor market outlook, Q3 financial forecasts, the status of 3-nanometer chip orders, progress in advanced packaging expansion, capital expenditure updates, and the latest developments in the AI market.

During the conference, TSMC will also unveil its financial results for the previous quarter. Analysts are expecting TSMC’s Q3 consolidated revenue, when measured in USD, to grow by nearly 10%, with a chance of gross margin exceeding the company’s estimated median of 52.5%. This suggests that Q3 profits are likely to surpass those of Q2.

TSMC has already announced its combined revenue for July and August, which totaled NT$366.3 billion. Based on TSMC’s financial forecasts, Q3 consolidated revenue is expected to reach between $16.7 billion and $17.5 billion USD. Using an exchange rate of 30.8 NT dollars per USD, this translates to an expected consolidated revenue in NT dollars ranging from NT$514.4 billion to NT$539 billion.

In the first half of the year, TSMC’s capital expenditure was $9.94 billion in Q1 and $8.17 billion in Q2, totaling $18.11 billion. Securities analysts previously estimated that TSMC’s annual capital expenditure for this year could range from $32 billion to $36 billion USD, with the possibility of a decrease next year.

Some industry experts believe that as advanced manufacturing processes have advanced to 2 nanometers, the customer base for the latest processes has started to decrease. Looking at the 3-nanometer process that is already in mass production, only Apple is currently leading the adoption, while others like NVIDIA, Qualcomm, and MediaTek are expected to transition to the 3-nanometer process next year. As a result, TSMC is shifting its focus to expanding production in the more cost-effective advanced packaging sector, which is one of the key reasons for the decrease in TSMC’s capital expenditure.

Furthermore, TSMC is currently estimating that it will be the first to introduce an enhanced version of the 3-nanometer process next year, with expectations to transition to the 2-nanometer process by 2025, using a new Gate-All-Around (GAA) transistor architecture to replace the FinFET transistor architecture used for nearly a decade. This represents a significant step into a new generation of semiconductor technology. Additionally, capacity for advanced packaging is expected to double next year.

(Photo credit: TSMC)