TSMC Earnings: Q2 Margins Beat Forecast, EPS Hits Record NT$27.25, Nearly Five Shares' Worth of Profit in First Half

TSMC (2330-TW)(TSM-US) held its earnings conference today (16th) and released its second-quarter financial report. Benefiting from full capacity utilization of advanced process technologies and advanced packaging, along with a recovery in mature processes, both the quarterly gross margin and operating margin exceeded financial forecasts, reaching 67.7% and 60.3% respectively—setting new historical highs. The net profit after tax was approximately NT$706.56 billion, with earnings per share (EPS) at NT$27.25, also a record high. The cumulative EPS for the first half of the year reached NT$49.32.

TSMC's Q2 revenue was USD 40.2 billion, representing a 12% sequential increase and a 33.7% year-over-year growth. In New Taiwan Dollars, this amounted to NT$1.27038 trillion, up 12% sequentially and 36% year-over-year. Gross margin was 67.7%, up 1.5 percentage points sequentially and 9.1 percentage points year-over-year. Operating margin was 60.3%, up 2.2 percentage points sequentially and 10.7 percentage points year-over-year. Net profit after tax was approximately NT$706.56 billion, up 23.4% sequentially and 77.4% year-over-year. Net profit margin was 55.6%, up 5.1 percentage points sequentially and 12.9 percentage points year-over-year. EPS was NT$27.25, equivalent to USD 4.31 per American Depositary Share (ADS).

For the first half of 2024, TSMC's cumulative revenue reached USD 76.099 billion, equivalent to NT$2.404484 trillion, a 35.6% year-over-year increase. Gross margin was 67%, up 8.3 percentage points year-over-year. Operating margin was 59.3%, up 10.2 percentage points year-over-year. Net profit after tax was approximately NT$1.279042 trillion, up 68.3% year-over-year. Net profit margin was 53.2%, up 10.3 percentage points year-over-year. EPS was NT$49.32, equivalent to USD 7.81 per ADS.

In terms of Q2 sales mix, the 2-nanometer process accounted for 3%, the 3-nanometer process for 30%, the 5-nanometer process for approximately 33%, and the 7-nanometer process for about 11%. Overall, advanced processes (including 7-nanometer and more advanced nodes) contributed 77% of the total wafer sales revenue for the quarter.