TSMC November Revenue NT$276.06B, Down 12.2% MoM

On December 10th, TSMC announced its financial results for November, revealing a revenue of approximately NT$276.06 billion, representing a 12.2% decrease from October but a 34.0% year-on-year increase. This performance aligns with market expectations and marks the highest November revenue on record. Cumulative revenue for the first 11 months of 2024 reached approximately NT$2.62 trillion, up 31.8% from the previous year.

TSMC had previously projected fourth-quarter revenue between $26.1 billion and $26.9 billion, which would represent a 13% quarter-on-quarter increase and a 35% year-on-year growth. Gross margin is expected to range between 57% and 59%, with a goal to approach 60%. The company's revenue guidance for the fourth quarter is in line with market expectations, slightly exceeding the expected 10% quarterly growth.

With the fourth-quarter forecast already released, TSMC has raised its annual U.S. dollar revenue growth estimate to nearly 30%, up from its previous forecast of 24% to 26%. TSMC Chairman and CEO, C.C. Wei, attributed this growth primarily to the company's technological leadership and the increasing demand for AI applications.

Regarding capital expenditure, TSMC's CFO, Lora Ho, emphasized that the company carefully assesses market demand each year when making decisions. TSMC anticipates that capital expenditure for 2024 will slightly exceed $30 billion, consistent with the previous forecast range of $30 billion to $32 billion. In the first three quarters of 2024, TSMC had already spent $18.53 billion on capital expenditures, accounting for approximately 57.9% to 61.8% of the total estimated expenditure for the year.