TSMC's Q3 foundry operating profit share reached 82%

According to the latest data from Strategy Analytics, TSMC’s foundry (excluding Samsung) operating profit share in Q3 in 2022 will be 82%, higher than Q2’s 80%, which is the company’s highest operating profit margin since 1996. Separately, GlobalFoundries saw the largest increase in its operating profit share.

According to the report, most foundries seem to pursue higher ASP (average selling price) rather than volume, which has driven steady profit growth.

According to TSMC's financial report, Q3 revenue was 20.23 billion US dollars, gross profit margin was 60.4%, and operating net profit margin was 50.6%. During the reporting period, TSMC’s 5nm shipments accounted for 28% of total wafer revenue; 7nm shipments accounted for 26%; 7nm and more advanced processes accounted for 54% of total wafer revenue. Huang Renzhao, chief financial officer of TSMC, once said that in order to cope with the pressure of rising costs in 2023, it will continue to promote the sales of value, and the long-term gross profit rate of more than 53% can still be achieved.