TSMC July Revenue Hits NT$2570 Billion, Up 45% YoY

On August 9, TSMC released its latest financial report, showing that consolidated revenue for July reached NT$256.953 billion, representing a 23.6% increase compared to the previous month and a 44.7% rise year-over-year. The company's cumulative revenue for the first seven months of 2024 was approximately NT$1.52 trillion, up 30.5% from the same period last year.

Looking ahead, TSMC forecasts third-quarter revenue in the range of $22.4 to $23.2 billion, equivalent to NT$728 to NT$754 billion, based on an exchange rate of NT$32.5 to USD. The midpoint of this range, NT$741 billion, would mark a 10% quarter-over-quarter increase. TSMC also expects its gross margin to be between 53.5% and 55.5%, with a midpoint of 54.5%, reflecting improved capacity utilization and cost management. The operating margin is projected to range from 42.5% to 44.5%, with a midpoint of 43.5%, an increase of 1.0 percentage points. TSMC remains committed to maintaining a long-term gross margin target of over 53%.

Industry experts highlight that the peak season for smartphone shipments, coupled with strong demand for advanced AI technologies, has kept TSMC's production capacity at high levels. This has helped mitigate the challenges associated with ramping up 3nm production and transitioning to 5nm processes.

In related news, sources from IC design companies have revealed that TSMC plans to raise prices for its 5nm and 3nm process technologies by 3% to 8% in 2025, continuing the trend seen in 2024. This price adjustment is aimed at sustaining TSMC's long-term gross margin target of 53% or higher, with the additional costs expected to be passed on to end customers, including key clients.