Home ยป Enhanced QoQ Revenue Growth in TSMC’s Q3 2023 Driven by Increasing Demand for 3nm Technology

Enhanced QoQ Revenue Growth in TSMC’s Q3 2023 Driven by Increasing Demand for 3nm Technology

TSMC, the leading semiconductor manufacturer, has reported its financial results for the third quarter of 2023. Total sales amounted to $546.733 billion, showing a 10.8% decline compared to the same quarter last year. Net profit stood at $211 billion, reflecting a 24.9% decrease. However, when compared to the previous quarter of 2023, revenue and net profit increased by 13.7% and 16.1% respectively.

In addition, TSMC provided further details on its revenue breakdown. Sales from 3-nanometer technology accounted for 6% of total revenue, while 5-nanometer technology contributed to 37% and 7-nanometer technology represented 16%. This indicates that the overall revenue from advanced manufacturing technology (7-nanometer or lower) accounted for 59%.

Wendell Huang, the CEO of TSMC, highlighted the strong revenue growth in this quarter, driven by demand for 3-nanometer technology products alongside increasing demand for 5-nanometer products. Looking ahead, Huang expects further growth driven by the demand for 3-nanometer products, despite the declining demand for previous-generation products, particularly PCs and smartphones.

Furthermore, C.C. Wei, the COO of TSMC, provided additional insights during the earnings call. He acknowledged the robust growth in the AI chip market but stated that it has not fully compensated for the decline in revenue from other business segments affected by market conditions.

In summary, TSMC reported a decrease in sales and net profit for the third quarter of 2023. However, compared to the previous quarter, both revenue and net profit showed positive growth. The company also highlighted the significant contribution of advanced manufacturing technologies, specifically 7-nanometer or lower, to its overall revenue. Despite challenges in certain market segments, TSMC remains optimistic about the strong growth potential in the AI chip market.

TLDR: TSMC’s Q3 2023 results showed a decline in sales and net profit, but positive growth compared to the previous quarter. The company’s revenue from advanced manufacturing technologies, particularly 7-nanometer or lower, accounted for a significant portion of total revenue. TSMC expects continued growth in the AI chip market, which partially offsets the impact of declining revenue from other business segments.

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