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TSMC Reports Q3 Earnings [pdf]

investor.tsmc.com

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Re: TSMC Reports Q3 Earnings [pdf]

#2

Post by cgeier »

> Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%.

Still surprised how profitable TSMC is. Especially as this seems to be below the market expectations (their stock is still falling).

Re: TSMC Reports Q3 Earnings [pdf]

#4

Post by sandos »

cgeier wrote: post #2

> Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%. Still surprised how profitable TSMC is. Especially as this seems to be below the market expectations (their stock is still falling).

I hate economics and know nothing really, but those numbers are the highest margins I have ever seen ?

Aren't they profitable because they are in a unique position? I would hope they keep being profitable. What happens if they would fail?

Re: TSMC Reports Q3 Earnings [pdf]

#5

Post by spywaregorilla »

dis-sys wrote: post #3

> Gross margin for the quarter was 60.4% this is what happens when you can convince your top customer to pay you 2.4x to gain that https://forums.appleinsider.com/discussion/229139/a16-bionic...

FWIW that statement isn't very meaningful without more context. 20% performance boost could easily be worth many multiples of 2.4x the cost.

They only directly compare (240% vs. 20%) if their initial values are the same.

Re: TSMC Reports Q3 Earnings [pdf]

#6

Post by manuelabeledo »

sandos wrote: post #4
cgeier wrote: post #2

> Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%. Still surprised how profitable TSMC is. Especially as this seems to be below the market expectations (their stock is still falling).

I hate economics and know nothing really, but those numbers are the highest margins I have ever seen ? Aren't they profitable because they are in a unique position? I would hope they keep being profitable. What happens if they would fail?

> those numbers are the highest margins I have ever seen ?

It’s not unusual to see 70%+ margins in software products.

Re: TSMC Reports Q3 Earnings [pdf]

#7

Post by throwawaylinux »

dis-sys wrote: post #3

> Gross margin for the quarter was 60.4% this is what happens when you can convince your top customer to pay you 2.4x to gain that https://forums.appleinsider.com/discussion/229139/a16-bionic...

Yep, that's what a process technology advantage is worth. Intel's margins were consistently mid/low 60s when their fabs made the best silicon.

Re: TSMC Reports Q3 Earnings [pdf]

#8

Post by dis-sys »

spywaregorilla wrote: post #5
dis-sys wrote: post #3

> Gross margin for the quarter was 60.4% this is what happens when you can convince your top customer to pay you 2.4x to gain that https://forums.appleinsider.com/discussion/229139/a16-bionic...

FWIW that statement isn't very meaningful without more context. 20% performance boost could easily be worth many multiples of 2.4x the cost. They only directly compare (240% vs. 20%) if their initial values are the same.

> 20% performance boost could easily be worth many multiples of 2.4x the cost.

clearly not the case for iphone 14. people are not buying new iphone just because it is 20% faster than iphone 13.

Re: TSMC Reports Q3 Earnings [pdf]

#9

Post by jakuboboza »

dis-sys wrote: post #3

> Gross margin for the quarter was 60.4% this is what happens when you can convince your top customer to pay you 2.4x to gain that https://forums.appleinsider.com/discussion/229139/a16-bionic...

i mean the wafers for N4 are smaller so the yields are smaller and in the end it costs more. Also Apple doesnt do small chips or chiplets so some silicon they make is really big. Big die = smaller yields.
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