TSMC April 2024 Revenue Report

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TSMC April 2024 Revenue Report​

Issued by: TSMC
Issued on:
2024/05/10

TSMC April 2024 Revenue Report

HSINCHU, Taiwan, R.O.C. – May 10, 2024 - TSMC (TWSE: 2330, NYSE: TSM) today announced its net revenue for April 2024: On a consolidated basis, revenue for April 2024 was approximately NT$236.02 billion, an increase of 20.9 percent from March 2024 and an increase of 59.6 percent from April 2023. Revenue for January through April 2024 totaled NT$828.67 billion, an increase of 26.2 percent compared to the same period in 2023.

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TSMC Spokesperson​

Wendell Huang
Senior Vice President & Chief Financial Officer
Tel:886-3-5055901

TSMC Deputy Spokesperson​

Nina Kao
Public Relations Division
Tel:886-3-5636688 Ext.7125036

 

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TSMC Special Board of Directors Meeting Resolution​

Issued by: TSMC
Issued on:
2024/05/10

TSMC Special Board of Directors Meeting Resolution

HSINCHU, Taiwan, R.O.C., May 10, 2024 – The TSMC (TWSE: 2330, NYSE: TSM) Board of Directors today held a special meeting, which passed the following resolutions:

1. Approved the 2024 first quarter Business Report and Financial Statements. First quarter consolidated revenue totaled NT$592.64 billion and net income was NT$225.49 billion, with diluted earnings per share of NT$8.70.

2. Approved the distribution of a NT$4.00 per share cash dividend for the first quarter of 2024, and set September 18, 2024 as the record date for common stock shareholders entitled to participate in this cash dividend distribution, and the ex-dividend date for the common shares shall be September 12, 2024. As required by Article 165 of Taiwan’s Company Law, the shareholders’ register shall be closed for five days prior to the record date (September 14 through September 18, 2024) for registration transfer, and the dividend will be paid on October 9, 2024. In addition, the ex-dividend date for TSMC American Depositary Shares (ADSs) will be September 12, 2024. Beginning May 28, 2024, the New York Stock Exchange will shorten the securities settlement cycle from two business days to one business day, and the record date for TSMC ADSs entitled to participate in this cash dividend distribution will also be September 12, 2024.

TSMC Spokesperson​

Wendell Huang
Senior Vice President & Chief Financial Officer
Tel:886-3-5055901

TSMC Deputy Spokesperson​

Nina Kao
Public Relations Division
Tel:886-3-5636688 Ext.7125036

 

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This is the shortest time interval (2 quarters) between dividend increases in TSMC's history. The average interval is 7 quarters.

 

[fansink]

As I mentioned here, it's going to be even harder now for FY24 YOY to be <30%, given YTD is already 26.2%, especially with price hikes around the corner.

 

[Mooredaddy]

Well that was unexpected. 60% growth is insanity

 

[hskuo]

Well that was unexpected. 60% growth is insanity

The 2023 base is low. For $30B CapEx/year, we might expect >20% revenue increase per year. It showed ~+40% revenue in 2022 vs. 2021, but~-6% in 2023 vs. 2022. The +60% growth in 2024 looks good and could be higher if no earthquake impact.

 

[Mooredaddy]

The 2023 base is low. For $30B CapEx/year, we might expect >20% revenue increase per year. It showed ~+40% revenue in 2022 vs. 2021, but~-6% in 2023 vs. 2022. The +60% growth in 2024 looks good and could be higher if no earthquake impact.

I think its important to keep in context TSMC's growth in 2022. Revenue grew 55.5% in April 2022 and 43% for '22 as a whole. So yes revenue did dip 14.3% in April 2023 but its still coming off a large growth rate. Aggregated over three years that is still a very large growth rate.

 

[Daniel Nenni]

I think 20% 2024 growth is more in line with expectations. 30% would be a home run, absolutely. Just wait until N3 hits full stride (2025). TSMC has 99% 3nm marketshare, absolutely.

 

[hist78]

I think its important to keep in context TSMC's growth in 2022. Revenue grew 55.5% in April 2022 and 43% for '22 as a whole. So yes revenue did dip 14.3% in April 2023 but its still coming off a large growth rate. Aggregated over three years that is still a very large growth rate.

I think 20% 2024 growth is more in line with expectations. 30% would be a home run, absolutely. Just wait until N3 hits full stride (2025). TSMC has 99% 3nm marketshare, absolutely.

TSMC's 2023 revenue was $69.3 billion. Assume a 30% growth for 2024, it will bring its whole year revenue to $90+ billion easily. Although the 30% is kind of a conservative forecast to me.

 

[fansink]

TSMC's 2023 revenue was $69.3 billion. Assume a 30% growth for 2024, it will bring its whole year revenue to $90+ billion easily. Although the 30% is kind of a conservative forecast to me.

With YTD at 26.2%, within the seasonaly slowest time of year for TSMC, to have a FY24 YOY of 20%, as Nenni suggests, there'll have to be quite a few negative MOM's for the balance of the year.

That'd be quite odd given the current semiconductor atmosphere.

NVDA guidance on May 22, should provide more clarity.

 

[hist78]

With YTD at 26.2%, within the seasonaly slowest time of year for TSMC, to have a FY24 YOY of 20%, as Nenni suggests, there'll have to be quite a few negative MOM's for the balance of the year.

That'd be quite odd given the current semiconductor atmosphere.

NVDA guidance on May 22, should provide more clarity.

In addition to AMD, Nvidia, Apple, Qualcomm, and MediaTek that traditionally brought volume to TSMC, there's a happy (and unhappy) customer, Intel, that is bringing large orders to TSMC too.

 

[Barnsley]

Will TSMC be throwing their suppliers a bone?

 

[fansink]

In addition to AMD, Nvidia, Apple, Qualcomm, and MediaTek that traditionally brought volume to TSMC, there's a happy (and unhappy) customer, Intel, that is bringing large orders to TSMC too.

I agree.

Further, during 1Q24 Earnings Call, both Jeff Su (TSMC, Director of IR) and Wendell Huang (TSMC, Senior VP of Finance & CFO) reiterated FY24 guidance of "mid 20's %".

Further yet, TSMC generally understates guidance.

 

[Mooredaddy]

I agree.

Further, during 1Q24 Earnings Call, both Jeff Su (TSMC, Director of IR) and Wendell Huang (TSMC, Senior VP of Finance & CFO) reiterated FY24 guidance of "mid 20's %".

Further yet, TSMC generally understates guidance.

Yeah I was be very surprised if it was mid 20’s%. Mid 30’s% seems more likely

 

[hist78]

I agree.

Further, during 1Q24 Earnings Call, both Jeff Su (TSMC, Director of IR) and Wendell Huang (TSMC, Senior VP of Finance & CFO) reiterated FY24 guidance of "mid 20's %".

Further yet, TSMC generally understates guidance.

Not too long ago some people were worried about that less and less companies who can afford to adopt new leading edge nodes due to the high cost.

It turned out the cost did go higher but more companies jump into the race by using those leading edge processes. The foundry model really works very well!

 

[hskuo]

Not too long ago some people were worried about that less and less companies who can afford to adopt new leading edge nodes due to the high cost.

It turned out the cost did go higher but more companies jump into the race by using those leading edge processes. The foundry model really works very well!

The worry is still there and there are still not many companies who can afford for the leading nodes tape-out and be capable to validate saleable products in very few re-spins. The rich daddy with free deep pocket is rare. It could be reason why even Jim Keller jumped into Samsung's wagon or approached intel instead of TSMC.

 

[hist78]

The worry is still there and there are still not many companies who can afford for the leading nodes tape-out and be capable to validate saleable products in very few re-spins. The rich daddy with free deep pocket is rare. It could be reason why even Jim Keller jumped into Samsung's wagon or approached intel instead of TSMC.

Foundry business model enables more companies to use advanced manufacturing technology. Using TSMC as an example, ten years ago in 2014 TSMC was on 20nm and only Apple, Qualcomm, MediaTek, Fujitsu, and Sun Microsystems adopted it. Now in 2024, TSMC's N3 and N5 are used by Apple, Qualcomm, MediaTek, AMD, Nvidia, Microsoft, Google, Amazon, Facebook, Broadcom, Marvell, Tesla, NXP, Ampere Computing, Cerebras Systems, Graphcore, Socionext, and Fujitsu. Or, we can add Intel to the growing list of TSMC leading edge customers too.

 

[hskuo]

Foundry business model enable more companies to use advanced manufacturing technology. Using TSMC as an example, ten years ago in 2014 TSMC was on 20nm and only Apple, Qualcomm, MediaTek, Fujitsu, and Sun Microsystems adopted it. Now in 2024, TSMC's N3 and N5 are used by Apple, Qualcomm, MediaTek, AMD, Nvidia, Microsoft, Google, Amazon, Facebook, Broadcom, Marvell, Tesla, NXP, Ampere Computing, Cerebras Systems, Graphcore, Socionext, and Fujitsu. Or, we can add Intel to the growing list of TSMC leading edge customers too.

Thanks for the inputs, but it was not apple-to-apple comparison and you mixed and missed companies in comparison. 20nm is the last node of planar transistor with electrostatic challenges, and the incentive to drive into next nodes were not strong. At that time, there were no strong, dreaming killing apps like AI chips, the new product development cost was not that high as of today, GF and Samsung were still strong in competition with tsmc. Some companies still hesitated to be early adopters and played multiple foundries strategy for the lower cost. Some companies like HiSilicon and others were missed in your 20nm list also........ But all above seem not the crucial point. Currently, AI dream (or someone call it bubble) is still booming and driving for more HPC. Rumor said Sam Altman called for $7 Trillions to build fabs....... Although the cost could be high but the demand is strong and if you have strong/ field proven teams for AI chip design, you got chance to start up a new company with investors. Upon the high cost, let's see how many companies can survive in the competition.

 

[hist78]

Thanks for the inputs, but it was not apple-to-apple comparison and you mixed and missed companies in comparison. 20nm is the last node of planar transistor with electrostatic challenges, and the incentive to drive into next nodes were not strong. At that time, there were no strong, dreaming killing apps like AI chips, the new product development cost was not that high as of today, GF and Samsung were still strong in competition with tsmc. Some companies still hesitated to be early adopters and played multiple foundries strategy for the lower cost. Some companies like HiSilicon and others were missed in your 20nm list also........ But all above seem not the crucial point. Currently, AI dream (or someone call it bubble) is still booming and driving for more HPC. Rumor said Sam Altman called for $7 Trillions to build fabs....... Although the cost could be high but the demand is strong and if you have strong/ field proven teams for AI chip design, you got chance to start up a new company with investors. Upon the high cost, let's see how many companies can survive in the competition.

If we move the comparison to TSMC N16 (TSMC's first FinFET) vs TSMC N5 and N3, it's the same situation. Apple, HiSilicon (also a N20 customer as @hskuo pointed out), MediaTek, Microsoft/AMD, Nvidia, Renasys, and PEZY were TSMC N16 customers. Qualcomm went to Samsung's 14nm at that time. HiSilicon has been placed on the US embargo black list that prohibits TSMC from doing anything for HiSilicon.

We can easily tell there are more companies joining TSMC N3 and N5 programs than N16. My observation is that the cost of development and manufacturing for leading edge nodes indeed increased. But more financially capable companies joined the fabless business and many of them are not a traditional semiconductor company to begin with.

 

[nghanayem]

If we move the comparison to TSMC N16 (TSMC's first FinFET) vs TSMC N5 and N3, it's the same situation. Apple, HiSilicon (also a N20 customer as @hskuo pointed out), MediaTek, Microsoft/AMD, Nvidia, Renasys, and PEZY were TSMC N16 customers. Qualcomm went to Samsung's 14nm at that time. HiSilicon has been placed on the US embargo black list that prohibits TSMC from doing anything for HiSilicon.

We can easily tell there are more companies joining TSMC N3 and N5 programs than N16. My observation is that the cost of development and manufacturing for leading edge nodes indeed increased. But more financially capable companies joined the fabless business and many of them are not a traditional semiconductor company to begin with.

That doesn’t change the point the Hskuo was making. Systems companies (besides Apple) weren’t making their own chips back in 2015. Google bought off the shelf SOCs for Pixel from merchant chip vendors. Cloud was not nearly as big as it is today and those folks were buying from AMD and mostly intel not making custom chips. GPUs were basically only used for specific highly parallelized HPC workloads/simulations and 3D rendering. It is something of a zero sum game Hist. Okay Amazon makes their own CPUs. Well that means AMD/intel sold less of them. The market didn’t grow or shrink from the perspective of wafer demand.

You also only counting your big sexy companies with their sexy products among the list of TSMC customers. As an example broadcomm is absolutely massive as is marvell. They make chips on N5 but N3 will be a little bit because they tend to wait for wafer prices to come down after wave 1 and wave 2 customers move onto the next shiny thing. Another example is smartTV chips (from the likes of QCOM/MTK/Samsung/LG) or NAND flash controllers (from silicon motion and the like) the volume on any one of those this year is almost assuredly more than the number of TPUs Google needs for the rest of the decade. Will those chips will one day be made on N3 today they are made on nodes like 16FF. Then there are the swarm of companies I have never heard of doing various analog/RF stuff.

With all of that said, I do agree that we are seeing more systems companies making chips. The same factors that made the fabless merchant chip companies even possible (semiconductor foundries, easily licensable IP, and modern EDA tools) are enabling the systems companies to get in on the fun. Throw in the increasing adoption and standardization around disaggregated design, RISC-V, and folks like ARM developing turn-key solutions that are even easier to integrate and the barriers of entry into chip design are becoming even lower. This lower barrier of entry will do the same thing to the fabless merchant chip vendors that they did to the IDM merchant chip vendors which they themselves did to the vertically integrated systems companies. And to be abundantly clear merchant chip vendors can and will still thrive. But they will do so with diminished importance as merchant chip vendors now need to ensure their chips are superior to what systems companies can throw together with off the shelf or even custom IPs (similar to how fabless companies need to have better products than their IDM counterparts to counteract the benefits of margin stacking).

This diminishing of the importance of the merchant chip vendors (be they fabless or pure-play IDMs) presents a unique opportunity only available to the foundries (be they pure-play or IDM-foundries) and the design enablement companies. An opportunity that I wonder if it will make pure-play IDMs move to the IDM-foundry model.