Taiwan Semiconductor Manufacturing Co. (TSMC) released its second-quarter results on Thursday, revealing key insights from their performance during the period. Let’s take a closer look at the details.
Net Profit
TSMC’s net profit for the quarter ended June 30 stood at NT$181.80 billion (US$5.84 billion), marking a decline of 23% compared to the previous year. This surpassed the analysts’ estimate of NT$173.23 billion, as reported by S&P Global Market Intelligence.
Revenue
The second-quarter revenue for TSMC witnessed a decrease of 10%, amounting to NT$480.84 billion.
What to Watch
Guidance
TSMC forecasts an increase in revenue for the third quarter, projecting a range of US$16.7 billion to US$17.5 billion, compared to the second-quarter revenue of US$15.68 billion. However, the company expects its operating profit margin to decline from 42.0% in Q2 to a range of 38%-40% in Q3.
Performance by Segments
In the second quarter, revenue from smartphones declined by 9% compared to the previous quarter, while revenue from high-performance computing witnessed a 5% decline. TSMC’s Chief Financial Officer, Wendell Huang, attributed this dip in performance to the dampened end-market demand for semiconductors caused by global economic conditions.
Capital Expenditure
TSMC’s capital expenditure for the second quarter totaled US$8.17 billion, marking a decrease compared to the first quarter’s US$9.94 billion and the final quarter of 2022’s US$10.82 billion.
