Taiwan Semiconductor Manufacturing Company (TSMC) reported a 79.7% increase in net income during the third quarter of 2022 to hit $9.2 billion (NT$ 280.8 billion), according to a company statement released Thursday.
Revenues during the third quarter were up by 47.9% compared to the same quarter in 2021 to reach $20.2 billion, driven by strong demand for its 5-nanometer (5nm) technologies.
Diluted earnings per share were $1.79 per ADR unit, which marked an increase of 79.8% compared to the same quarter last year.
The gross margin, operating margin and net profit margin was recorded at 60.4%, 50.6%, and 45.8%, respectively.
In September, the company's board of directors approved the issuance of US dollar-denominated senior unsecured corporate bonds for an amount not to exceed $4 billion to finance TSMC's capacity expansion.
Shipments of 5nm accounted for 28% of the total wafer revenue of the third quarter, while 7nm accounted for 26% of the total. Advanced technologies accounted for 54% of total wafer revenue, TSMC said.
Smartphones and HPC represented 41% and 39% of net revenues, respectively, while IoT, automotive, DCE, and other products, each represented 10%, 5%, 2%, and 3%, respectively.
Smartphone revenues increased by 25%, while revenues from IoT increased by 33%. Similarly, revenues from automotive increased by 15% and revenues from HPC increased by 4%.
Customers based in North America accounted for 72% of total net revenue during the third quarter of 2022. Customers in the Asia Pacific region accounted for 10%, China for 8%, EMEA for 5%, and Japan for 5%. TSMC expects to attain revenues between $19.9 billion and $20.7 billion for the fourth quarter of 2022.
It expects gross profit margin to be between 59.5% and 61.5%, and operating profit margin to be between 49% and 51%.
"Moving into the fourth quarter 2022, we expect our business to be flattish, as the end market demand weakens, and customers’ ongoing inventory adjustment is balanced by continued ramp-up for our industry-leading 5nm technologies,” said Wendell Huang, vice president and chief financial officer of TSMC.
