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Taiwan Semiconductor Manufacturing Company Limited (NYSE: $TSM)

Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co Ltd, (NYSE: $TSM) based in Taiwan, primarily offers integrated circuit manufacturing services. These services encompass various aspects such as process technology, specialized process technology, support for design ecosystems, mask technology, 3DFabricTM advanced packaging, and silicon stacking technology services.

The company has successfully executed the transfer and mass production of 5nm technology and is actively involved in the research and development of 3nm and 2nm process technologies.

Its product applications span across the electronic application industry, encompassing personal computers and peripherals, information application products, wired and wireless communication system products, as well as servers and data centers.

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TSMC Q3 Earnings: 3nm Production Node Accounts for 6% of Revenue

While Taiwan Semiconductor Manufacturing Co. (TSMC) officially commenced chip production using its N3 (3nm-class) process technology in late 2022, meaningful N3 revenue was not recognized in Q1 and Q2.

However, in the recent Q3 earnings announcement, the foundry reported its first N3-related revenue, accounting for 6% of TSMC’s Q3 revenue. Notably, advanced nodes now contribute to 59% of TSMC’s overall earnings.

For the initial quarter of substantial 3nm revenue, TSMC recorded approximately $1.03 billion in income from the new node. To provide context, TSMC’s first N5 revenue was recognized in Q3 2020, generating $0.97 billion, constituting 8% of the company’s revenue share at that time for 5nm-class chips.

The robust initiation of N3 revenue aligns with expectations, given the escalating prices TSMC is presumed to charge for its state-of-the-art wafers. Despite a billion-dollar quarter, TSMC emphasizes that it is in the early stages of its 3nm ramp-up, acknowledging that this process will take time.

Looking ahead, TSMC’s long-term strategy for the 3nm node involves offering various iterations of the process. The baseline N3 (N3B) node utilizes up to 25 EUV layers, some employing expensive EUV double-patterning, providing higher transistor density but at elevated costs and catering to a limited customer base.

On the other hand, the more cost-efficient N3E process technology, with up to 19 EUV layers and no EUV double-patterning, offers lower logic density, better yields, and a broader process window. TSMC plans to start ramping up N3E in Q4 2024, anticipating significant advancements with this version of its 3nm-class process technology.

Taiwan Semiconductor Manufacturing Reports Significant October Revenue Jump, Despite 2023 Decline

Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), the world’s premier semiconductor manufacturer, has reported a substantial surge in its consolidated net revenue for October 2023.

As per a Form 6-K report submitted to the SEC on Nov. 10, TSMC’s revenue for the month reached NT$243.20 billion. This figure marks a significant 34.8% increase from September 2023 and a notable 15.7% year-over-year growth from October 2022.

Despite the robust October results, TSMC’s overall revenue trajectory for the year presents a contrasting view. The company’s total revenue from January to October 2023 amounted to NT$1,779.41 billion, reflecting a 3.7% decrease compared to the same period last year.

Alongside revenue figures, TSMC disclosed financial support provided to its subsidiaries. Particularly, TSMC Arizona and TSMC Nanjing received substantial loans from their parent companies, with outstanding amounts reported at NT$97,305,000 and NT$39,006,000, respectively. These loans align with TSMC’s strategy to fortify its global operations and expansion initiatives.

Additionally, TSMC extended guarantees to several subsidiaries, including TSMC North America, TSMC Global, TSMC Arizona, TSMC Development, and TSMC Design Technology Japan. This financial backing emphasizes TSMC’s dedication to its international entities and their respective markets.

The report also delves into TSMC’s financial derivative transactions for October 2023. The company engaged in various forward contracts through entities such as TSMC, TSMC China, and TSMC Nanjing without applying hedge accounting.

Furthermore, it held forward contracts via TSMC and futures contracts through TSMC Global, which did apply hedge accounting. These financial instruments serve to manage risks associated with fluctuations in foreign exchange rates and commodity prices.

The report includes detailed Mark to Market of Outstanding Contracts data, providing insights into the valuation of these derivatives based on prevailing market conditions.

TSMC’s recent financial disclosures are particularly significant amidst the dynamic challenges and opportunities faced by the semiconductor industry. Investors and industry analysts closely monitor the company’s performance as a crucial indicator of the sector’s health and future prospects.

What Countries Does TSMC Operate In?

TSMC’s main office is situated in the Hsinchu Science Park, Taiwan, and it maintains account management and engineering service offices across various locations, including China, Europe, India, Japan, North America, and South Korea.

Furthermore, additional support and services are offered through the company’s Value Chain Alliance (VCA) partners.

Is Taiwan Semiconductor Manufacturing Listed in USA?

TSMC is listed on both the Taiwan Stock Exchange (TWSE: 2330) and the New York Stock Exchange (NYSE: $TSM).

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