TSMC Reports 20% YoY Revenue Growth in Q2

Article By : Taiwan Semiconductor Manufacturing Co. Ltd

TSMC's second quarter business was mainly driven by continued strength in HPC and automotive-related demand.

Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) has posted consolidated revenue of NT$372.15 billion, net income of NT$134.36 billion, and diluted earnings per share of NT$5.18 (US$0.93 per ADR unit) for the second quarter ended June 30, 2021. Year-over-year, second quarter revenue increased 19.8% while net income and diluted EPS both increased 11.2%. Compared to first quarter 2021, second quarter results represented a 2.7% increase in revenue and a 3.8% decrease in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, second quarter revenue was $13.29 billion, which increased 28.0% year-over-year and increased 2.9% from the previous quarter. Gross margin for the quarter was 50.0%, operating margin was 39.1%, and net profit margin was 36.1%.

In the second quarter, shipments of 5-nanometer accounted for 18% of total wafer revenue; 7-nanometer accounted for 31%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 49% of total wafer revenue.

“Our second quarter business was mainly driven by continued strength in HPC and automotive-related demand,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into third quarter 2021, we expect our business to be supported by strong demand for our industry leading 5nm and 7nm technologies, driven by all four growth platforms, which are smartphone, HPC, IoT and automotive-related applications.”

Based on the company’s current business outlook, the management expects third quarter revenue to be between $14.6 billion and $14.9 billion. Based on the exchange rate assumption of $1:NT$27.90, gross profit margin is expected to be between 49.5% and 51.5%, while operating profit margin is expected to be between 38.5% and 40.5%.

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