Surpassing market expectations, TSMC reported a consolidated revenue of NT$276.058 billion (approx. US$8.504 billion) for November 2024. Although this represents a decrease of 12.2% from the peak in October, it marks a significant year-over-year increase of 34%, while TSMC's cumulative revenue from January to November 2024 is approximately NT$2.61 trillion, reflecting a 31.8% year-over-year increase.
Previously, TSMC estimated that its fourth-quarter revenue would reach between US$26.1 billion and US$26.9 billion, representing a quarter-on-quarter growth of 11.06% to 14.46%. Based on an exchange rate of US$1 to NT$32, this translates to approximately NT$835.2 billion to NT$860.8 billion, with a gross margin of around 57% to 59%, and an operating margin between 46.5% and 48.5%.
Source: DIGITIMES, December 2024
Benefiting from large orders from major clients including Apple, TSMC's consolidated revenue surged to NT$314.24 billion in October, marking the first time monthly revenue exceeded NT$300 billion and setting a new monthly record. Despite weaker-than-expected demand in the smartphone and PC markets, the ongoing strong demand for AI chips has resulted in a smaller decline than anticipated by the market.
Based on these figures, the combined revenue for October and November 2024 has already reached NT$590.298 billion. To achieve the high end of quarterly revenue targets, December revenue only needs to be around NT$270.5 billion. TSMC also revised its forecast for annual dollar revenue growth in 2024, increasing it from 24%-26% to nearly 30%.
Reportedly, TSMC's utilization rates for 5nm and 3nm processes remain at full capacity. The implementation of the US AI chip ban has limited Chinese clients' access to wafer production but has not significantly impacted TSMC. An annual revenue growth of 20% appears achievable.
Additionally, there are reports within the supply chain indicating that due to insufficient capacity and the need to pass on various costs, TSMC plans to raise prices for 5nm and 3nm processes, as well as CoWoS advanced packaging services in 2025.
