From RTT News:

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) reported a decline in fourth-quarter profit, but revenue was essentially flat and better than market expectations. The company’s first-quarter projections include sequentially lower revenues, with profit and revenues increasing from last year. TSMC shares were up around 6 percent in pre-market activity on the NYSE. For the first quarter, the company projects revenue between $18.0 billion and $18.8 billion, with gross profit and operating profit margins between 52 and 54 percent, and 40 and 42 percent respectively.

Wendell Huang, VP and Chief Financial Officer of TSMC, credited the company’s strong fourth-quarter performance to the continued ramp of their 3-nanometer technology. The upcoming first quarter, he noted, may be impacted by seasonal smartphone demand, partly offset by continued HPC-related demand.

TSMC’s fourth-quarter net income was NT$238.71 billion, or a 19.3 percent decrease from the prior year. Earnings per share also fell to NT$9.21 or $1.44 per ADR unit, from NT$11.41 the previous year. Consolidated revenue remained essentially flat year-over-year at NT$625.529 billion.

In the fourth quarter, shipments of 3-nanometer chips accounted for 15 percent of total wafer revenue, while 5-nanometer chips accounted for 35 percent, and 7-nanometer chips accounted for 17 percent of total wafer revenue. Advanced technologies accounted for 67 percent of total wafer revenue.

In pre-market activity on the NYSE, TSMC shares were trading at $108.78, up 5.7 percent.

The company expects the 2024 capital budget to be between $28 billion and $32 billion. Analysts on average expect first-quarter revenues of $18.26 billion. TSMC’s fourth-quarter revenue increased 14.4 percent sequentially and 13.6 percent in US dollars, with gross margin at 53.0 percent, and operating margin at 41.6 percent.



Read more: TSMC Q4 Profit Drops, Revenues Flat, But Stock Up In Pre-market