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 advanced process technologies, especially 3nm and 5nm.

• Net income for Q3 was NT$325.26 billion, up 31.2% sequentially and 54.2% year-over-year; EPS was NT$12.54.

• ROE for Q3 was 33.4%.

• Full-year 2024 revenue is forecast to grow close to 30% in USD terms, supported by robust AI demand.

• For the nine months ended September 30, 2024, net revenue was NT$2,025.8 billion, up 32% year-over-year, with net income at NT$798.0 billion.

Financial highlights

• Q3 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 for Q3 was 42.8%.

• Free cash flow for Q3 was NT$184.91 billion; cash and marketable securities at quarter end were NTD 2.2 trillion (US$69 billion).

• Q3 CapEx was US$6.40 billion; 2024 CapEx expected slightly above US$30 billion.

Outlook and guidance

• Q4 2024 revenue is guided at $26.1–$26.9 billion, up 13% sequentially and 35% year-over-year at midpoint; gross margin guided at 57–59%.

• Operating margin for Q4 guided at 46.5–48.5%.

• Full-year 2024 revenue growth forecast near 30% in USD.

• CapEx for 2024 to be slightly higher than $30 billion, with majority allocated to advanced technologies.

• Management expects continued strong demand in high performance computing and smartphone platforms.