Taiwan Semiconductor Manufacturing Co. (2330-TW) (TSM-US) announced Tuesday (May 10) NT$172.561 billion in April revenue, up 0.3% month-over-month and 55% year-over-year, surpassing January’s NT$172.2 billion and setting a new monthly record high. Cumulative revenue for the first four months of the year increased by 40.1% to NT$663.637 billion.
TSMC’s revenue could reach US$17.6-18.2 billion in the second quarter, which is equivalent to a quarterly increase of 3.2% to 6.7%, with gross margin estimated at 56-58% and profitability at 45% to 47%, both higher than last quarter’s 55.6% and 45.6%, respectively.
Against the recent slowdown in consumer market demand, TSMC said that inflation would inevitably affect the overall environment of consumption. Still, demand in the semiconductor market will continue to grow, especially logic ICs for cars and high-efficiency computing. Thanks to upward revenue growth this year, the company added that there is a chance to exceed the previous estimate of 24% to 29%.
TSMC’s six product lines grew in the first quarter compared to the fourth quarter of last year, with high-efficiency computing and automotive platforms increasing 26% quarter-over-quarter, making them key growth drivers. This year’s annual growth rate will also be higher than the company’s average.
TSMC is benefiting from solid demand for high-efficiency computing and automotive applications, despite the recent correction risks in the semiconductor market. TSMC’s outlook remains positive, with opportunities such as Intel CPU N3 outsourcing, Apple modem chips and RF transceivers, iPhone 15 and Qualcomm SD8 processors contributing to TSMC’s revenue growth of approximately 10% next year.
TSMC’s stock price has been tumbling lately, and today it tested the NT$500 mark again with moderated gains during the day. TSMC ended the day down 0.38% to close at NT$518. Since May, market value slid to NT$13.43 trillion, or NT$$510 billion short of accumulated market value.