TSMC August Revenue Up 6.2%, Q3 3nm Boost
On September 8th, Taiwan Semiconductor Manufacturing Company (TSMC), a prominent player in the semiconductor foundry sector, released its financial report for August. The following summary provides a comprehensive overview of TSMC's recent financial performance and market analysis.
In August, TSMC reported consolidated revenues of NT$188.68 billion (approximately $6.8 billion USD), representing a notable 6.2% increase compared to the previous month but also indicating a 13.5% decrease when compared to the corresponding period in the previous year. Notably, these figures marked the second-highest results for the same period in the company's history. Over the first eight months of 2023, TSMC's cumulative revenue reached approximately NT$1,355.77 billion (approximately $48.8 billion USD), reflecting a 5.2% decline compared to the same period in 2022.
TSMC had previously projected its third-quarter consolidated revenue to be within the range of $5.68 billion to $5.95 billion USD, with a midpoint estimate of $5.66 billion USD. This forecast represents a 9.5% increase compared to the previous quarter but a 12.09% decrease compared to the same quarter in the preceding year. TSMC anticipates a resurgence in revenue during the third quarter, driven by robust production of 3nm process technology, although some growth potential may be offset by ongoing customer inventory adjustments.
According to the latest data from TrendForce, in the second quarter of 2023, TSMC's revenue decreased to $15.66 billion USD, with a sequential decline of 6.4%. Nevertheless, it retained its position as the global leader with a market share of 56.4%, followed by Samsung, GlobalFoundries, UMC, and SMIC.
TrendForce reports that revenue for advanced processes of 7nm and below has shown growth, while 5nm and 4nm processes have experienced declines. The third quarter is expected to witness increased demand for related components due to the production cycle of new iPhones. Additionally, the contribution of the high-priced 3nm process is anticipated to compensate for limitations in mature processes, leading to a rebound in TSMC's revenue during the third quarter.
Examining the broader industry landscape, TrendForce highlights the low inventory levels for TV components and a thriving mobile phone repair market, which is driving demand for TDDI (Touch and Display Driver Integration) components. The second quarter experienced sporadic urgent orders within the supply chain, supporting capacity utilization and revenue. However, it is unlikely that the benefits of these urgent orders will extend into the third quarter. Conversely, demand for mainstream consumer products such as smartphones, PCs, and notebooks remains subdued, resulting in continued underutilization of capacity in high-priced advanced processes. Furthermore, industries like automotive, industrial control, and servers, which traditionally exhibited stable demand, are now entering a phase of inventory adjustment. This has had an impact on the global top ten semiconductor foundry production values, which decreased by approximately 1.1% sequentially to $26.2 billion USD in the second quarter.
