TSMC Raup Untung Lebih Tinggi Di Q4 2022, Tapi Pesimis Di Q1 Tahun Ini

JAKARTA - Taiwan Semiconductor Manufacturing Company (TSMC) generated higher revenue in the fourth quarter of 2022, beating its market estimates and expectations. But earlier this year, the company was less optimistic.

In the earnings report, TSMC managed to make 19.93 billion US dollars equivalent to Rp302 trillion in Q4 2022, up 26.7 percent year-on-year (YoY), but down 1.5 percent from the previous quarter's results due to the economic impact that began to spread.

These figures are of course in line with TSMC's previous predictions during Q3 revenues, which the company expects to generate 19.9 billion US dollars and 20.7 billion US dollars by Q4 2022.

This increase is due to the strong demand factor for semiconductors made using the advanced process node. As much as 54 percent of the wafer income comes from advanced technology 7nm or later.

This consists of 5nm product shipments representing 32 percent of the total wafer income, while 7nm accounts for another 22 percent.

However, TSMC is not immune to pressure that affects others in the semiconductor industry. In fact, the company predicts Q1 2023 revenue will drop by 5 percent and cut annual investments as Apple's main supplier has weaker demand, due to the slowing global economy.

"Our fourth-quarter business is damped by the weakening of end-market demand, and customer inventory adjustments, despite continued improvements to our industry's leading 5nm technology," said TSMC VP and CFO

Entering the first quarter of 2023, as the overall macroeconomic condition remains weak, we expect our business to be more affected by the continued weakening demand for the final market, and further adjustment of customer supplies," he added.

Currently, TSMC's earnings expectations for Q1 2023 are set to fall between US$16.7 billion and US$17.5 billion, which will result in the first decline in revenue for the business in four years.

TSMC's gross profit margin for Q1 2023 is estimated to be between 53.5 percent and 55.5 percent, compared to 62.2 percent on Q4 results this week, while operating profit margins are estimated to be between 41.5 percent and 43.5 percent, compared to 52 percent for Q4 2022.

In this regard, TSMC said it expects the company's capital budget spending in 2023 to range from US$32 billion and US$36 billion.

Even so, TSMC may also be in a better position than the others, as there is still a possibility of demand for 5nm and 3nm production nodes, now TSMC is just starting to increase its production.