Taiwan Semiconductor Manufacturing Company (TSM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NT$759.69 billion (US$23.50 billion), up 12.9% sequentially and 39% year-over-year, driven by strong demand for 3nm and 5nm technologies.

• Net income was NT$325.26 billion, up 31.2% sequentially and 54.2% year-over-year; EPS was NT$12.54.

• ROE reached 33.4% for the quarter.

• Advanced nodes (7nm and below) accounted for 69% of wafer revenue.

• Q4 2024 revenue is guided at $26.1–$26.9 billion, up 13% sequentially and 35% year-over-year at midpoint.

Financial highlights

• Gross margin improved to 57.8%, up 4.6 percentage points sequentially and 3.5 points year-over-year.

• Operating margin rose to 47.5%, up 5.0 points sequentially and 5.8 points year-over-year.

• Net profit margin reached 42.8%, up 6.0 points from 2Q24 and 4.2 points from 3Q23.

• Free cash flow for Q3 was NT$184.91 billion, with operating cash flow at NT$391.99 billion.

• CapEx for Q3 was NT$207.08 billion (US$6.40 billion).

Outlook and guidance

• Q4 gross margin expected between 57% and 59%, operating margin 46.5%–48.5%.

• Full-year 2024 revenue forecasted to increase by close to 30% in USD terms.

• 2024 CapEx expected to be slightly above $30 billion, with 70–80% for advanced process technologies.

• CapEx for 2025 likely to be higher than 2024, reflecting strong growth outlook.

• Q4 2024 revenue guidance set at US$22.4–23.2 billion.