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TSMC Experiences Q1 2023 YoY Sales Boost Amid QoQ Challenges

On April 20, 2023, TSMC announced its financial results for the first quarter (January to March) of the same year. Sales were NT$508.63 billion (approximately ¥2.2309 trillion/US$16.72 billion), up 3.6% year-on-year and down 18.7% quarter-on-quarter. Net profit was 206.9 billion New Taiwan dollars (about US$6.71 billion), up 2.1% year-on-year, but down 30% quarter-on-quarter. Gross margin was 56.3% and operating margin was 45.5%.

Looking at sales by manufacturing process node, the 5nm generation accounted for 31% of the total, followed by 7nm at 20% and 16nm at 13%. It can be seen that the cutting-edge 5nm/7nm alone has already exceeded half. By application, HPC (High Performance Computing) accounted for 44% of the total, and smartphones accounted for 34%. Automotive was 7%. Quarter-on-quarter growth rates were negative across the board, except for automotive, with smartphones down 27% and HPC down 14%.

As for the outlook for the second quarter of 2023, sales are expected to be between US$15.2 billion and US$16 billion, down from US$16.72 billion in the first quarter. Gross profit margin is expected to be 52-54%, and operating profit margin is expected to be 39.5-41.5%.

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