TSMC FY24 Q1 Earning Report Viz & MA Analysis

Taiwan Semiconductor Manufacturing Company Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s second most valuable semiconductor company, the world’s largest dedicated independent semiconductor foundry, and its country’s largest company, with headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan.

TSMC FY23 Q4

Summary

• EPS: $1.38/ QOQ HPC +3%, SP -16%, IoT +5%, Auto flat.
• Q2 outlook $19.6B-$20.4B in Sales / 50%-53% in Gross margin/ 40%-42% in Operating margin.
• April 3 earthquake impact: Reduce Q2 gross margin by about 50 bps.
• 25% increase in electricity price in Taiwan, reducing Q2 gross margin by 70–80 bps.
• N2 is on track for volume production in 2025.
• 2024 Capex: $28B-$32B, 70%-80% for advanced process, 10%-20% for specialty technologies and 10% for advanced packaging, testing, mask making, etc.