[News] TSMC Expects Q4 Revenue to Surpass USD 26.1 Billion, Revises Full-Year Revenue Forecast Upward

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TSMC held its earnings call earlier today, October 17th. According to a report in Economic Daily, based on an exchange rate of USD 1 to TWD 32, the company estimates the fourth-quarter revenue to be between USD 26.1 billion and USD 26.9 billion, representing an average quarter-over-quarter increase of 13%.

For the third quarter, TSMC reported consolidated revenue of USD 23.5 billion. The gross margin was 57.8%, while the operating profit margin was 47.5%.

Looking ahead to the fourth quarter, TSMC estimates that the revenue will be between USD 26.1 billion and USD 26.9 billion, estimated an average quarter-over-quarter increase of 13%. The gross margin of the fourth quarter will range between 57% and 59%, with the operating profit margin expected to be between 46.5% and 48.5%.

As TSMC has announced its estimated revenue for the fourth quarter, the company anticipates a year-over-year increase of 30% for 2024, revised up from the previous estimate of 24%-26%. TSMC Chairman and CEO C.C. Wei noted that this projected growth of nearly 30% is driven by advanced technology and AI.

According to a report from Commercial Times, driven by strong AI demand, TSMC will continue its investments in this area. Regarding the capital expenditure, TSMC estimated that the capital expenditure of 2024 will be slightly above USD 30 billion, aligning closely with the projected range of USD 30 billion to USD 32 billion estimation from the Q2 earnings call in July 2024.

(Photo credit: TSMC)