TSMC winning call shows robust growth in the middle of the challenges

The Taiwan Semiconductor Manufacturing ((TSM)) held its winning discussion in the second quarter. Read on for the main highlights of the call.

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During the latest earnings authorization of the Taiwanese semiconductor company, the feeling was largely positive, which is due to strong growth in sales through advanced technologies and platforms such as HPC and IoT. However, the company recognized challenges such as overwind and the margin dilution of overseas factories. Despite these hurdles, the long-term outlook remains optimistic due to the robust AI and HPC demand.

Strong sales growth

The company recorded a significant increase in sales with a sequential growth of 11.3% in NT and sequential growth of 17.8% of $ 30.1 billion. This exceeded the instructions in the second quarter and shows the strong performance of the company on the market.

Record -Eps and ROE

TSMC achieved a record EPS in the second quarter of TWD 15.36 with an increase of 60.7% compared to the previous year. The return on equity also achieved impressive 34.8%, which reflected the efficient use of shareholders by the company.

High demand for advanced technologies

Advanced technologies continue to do the success of TSMC, whereby the 3-nanometer process technology contributes 24% to Wafer's sales. The 5-nanometer and 7-nanometer technologies made up 36% and 14% of wafer sales. Overall, progressive technologies made 74% of the company's wafer revenue.

Strong platform growth

The company recorded strong platform growth, whereby the HPC turnover rose 14% compared to the quarter and made 60% of sales in the second quarter. In the IoT sales, also increased by 14%, which highlighted the growing demand in these sectors.

Positive KI and HPC view

The demand for AI and HPC-related technologies is still strong, with TSMC expecting sales growth of around 30% of around 30%. This positive outlook underlines the company's strategic focus on these growth areas.

Acceptance of the gross margin

Despite the growth of sales, the gross margin from TSMC fell by 0.2 percentage points to 58.6%. This decline was attributed to unfavorable exchange rates and the margin dilution through factory in overseas.

Foreigners against the headwind

The appreciation of the NT dollar had a negative impact on sales in the second quarter of around 4.4% of the NT and gross margin by about 180 basis points. This headwind is a challenge for the company's financial performance.

Overseas fabulous margin thinning

The margin thinning of overseas, especially in Arizona and Kumamoto, the gross margins will probably continue to have 2% to 4% in the next five years. This continuous challenge requires strategic management to alleviate their effects.

Sales concerns in the fourth quarter

The company expressed concerns about the potential decline in sales in the fourth quarter due to macroeconomic uncertainties and tariffs. This careful guide reflects the careful approach of the company in the middle of external challenges.

Future -oriented instructions

With regard to the front, TSMC delivered guidelines for the third quarter and predicted sales between $ 31.8 billion and $ 33 billion, which focuses on a sequential increase of 8% and an increase of 38% compared to the previous year. The company expects a gross margin between 55.5% and 57.5% and an operating margin of 45.5% and 47.5%. Despite the challenges of exchange courses and overseas, TSMC is still obliged to use its management of manufacturing technology in order to achieve a long -term gross margin of 53% or higher.

In summary, TSMC's profit call reflected a positive feeling with strong sales growth, which is due to advanced technologies and platforms. While challenges such as foreign exchange and margin dilution of FABS in overseas exist, the future-oriented guidance of the company and the strategic focus on AI and HPC demand offer a promising outlook.

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