TSMC Announces Q4 2023 Financial Results
TSMC (TWSE: 2330, NYSE: TSM) has reported its consolidated financial results for the fourth quarter ended December 31, 2023. The company recorded a consolidated revenue of NT$625.53 billion, net income of NT$238.71 billion, and diluted earnings per share of NT$9.21 (US$1.44 per ADR unit).
Compared to the same period last year, fourth quarter revenue remained relatively unchanged, while net income and diluted EPS decreased by 19.3%. However, when compared to the third quarter of 2023, fourth quarter results showed a 14.4% increase in revenue and a 13.1% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis. In US dollars, fourth quarter revenue amounted to $19.62 billion, representing a 1.5% decrease year-over-year but a 13.6% increase from the previous quarter. The gross margin for the quarter was 53.0%, the operating margin was 41.6%, and the net profit margin was 38.2%.
In terms of product shipments, 3-nanometer accounted for 15% of total wafer revenue, 5-nanometer accounted for 35%, and 7-nanometer accounted for 17%. Advanced technologies, which include 7-nanometer and more advanced technologies, contributed to 67% of total wafer revenue.
Wendell Huang, VP and Chief Financial Officer of TSMC, stated, "Our fourth quarter business was supported by the continued strong ramp of our industry-leading 3-nanometer technology. Moving into the first quarter of 2024, we expect our business to be impacted by smartphone seasonality, partially offset by continued HPC-related demand."
Based on the company's current business outlook, TSMC expects the following performance for the first quarter of 2024:
- Revenue is projected to be between US$18.0 billion and US$18.8 billion.
- Gross profit margin is expected to range from 52% to 54%.
- Operating profit margin is anticipated to be between 40% and 42%.
The management also forecasts a capital budget of US$28 billion to US$32 billion for 2024.
