TSMC’s May Revenue Surges to NT$185.7 billion, a New High for Two Months in Row

up 7.6% month-on-month and 65.3% year-on-year, driven by continued strong demand for automotive and high-efficiency computing.

For the second consecutive month, the company has set a new record and exceeded NT$180 billion for the first time. Cumulative revenue for the first five months was NT$849.343 billion, an annual increase of 44.9%. Based on financial projections, TSMC’s revenue in June is expected to decline from May.

TSMC’s revenue is estimated to reach US$17.6-18.2 billion in the second quarter (based on US$1 for NT$28.8), which is equivalent to a quarterly increase of 3.2-6.7%, with a gross margin estimated at 56-58% and profitability at 45-47%, both higher than last quarter’s 55.6% and 45.6%.

The market is worried about the outlook for semiconductor demand due to inflation and China’s lockdowns, which have affected consumer market demand. However, TSMC chairman Mark Liu said the semiconductor industry inventory adjustment is ongoing.

TSMC has the advantages of technology leadership, manufacturing excellence, and customer trust, coupled with stable demand for automotive and efficient computing, but there is still insufficient supply. The capacity utilization rate is still total this year, he added.

Liu also reiterated at the shareholders’ meeting that this year’s revenue will grow by about 30%, boosting the market. Foreign investors are optimistic that it will help resolve some investors’ concerns about a hard landing in technology demand.

TSMC’s stock price has been tumbling this year due to environmental factors, and its market capitalization has lost more than US$100 billion.

However, with the general headwinds affecting the semiconductor industry easing, investors’ attention will shift back to the company’s fundamentals, and TSMC’s stock price is expected to soar by about 50% to reach a new high, according to a seller’s analyst forecast from Bloomberg.