One of the world’s largest semiconductor maker, Taiwan-based TSMC is betting on a strong operating margins and revenue growth in Q3 CY2022 on the back of steady increase in monthly revenue coupled with pipeline of caapcity expansion plans based on demand expectations from across sectors including automotive.
TSMC reported a 6 percent increase in its July revenue at compared to its June performance. On a year-on-year basis the global chipmaker clocked nearly 50 percent increase in revenue compared to last July. Revenues for January through July 2022 have clocked a 41.1 percent increase compared to the same period in 2021.
This revenue performance is in sync with the company’s third quarter projections. The third quarter revenue is expected to be between $19.8 – 20.6 billion. The gross profit margin is expected to be between 57.5-59.5 percent for the third quarter. Operating profit margin is expected to be between 47-49 percent in the current quarter.
The TSMC board has also approved capital appropriations of approximately $9,234.73 million for installation and expansion of advanced technology capacity as well as specialty technology capacity.
Further in a bid to finance TSMC’s capacity expansion, the board has given its nod to TSMC Arizona, a wholly-owned subsidiary of TSMC, for issuance of US dollar-denominated senior unsecured corporate bonds up to $4 billion.
Speaking earlier after announcement of TSMC’s second quarter results, Wendell Huang, VP and Chief Financial Officer of TSMC reiterated that Automotive-related demand had been driving the company growth and added that, “Moving into third quarter 2022, we expect our business to be supported by continued demand for our industry-leading 5nm and 7nm technologies.”