The surging wave of AI has provided a lifeline for Taiwan Semiconductor, which has been struggling against headwinds in the semiconductor industry. Over the past three months, a flood of AI-related orders has partially offset the impact of the downturn in the consumer electronics sector. However, in the short term, the new AI-driven demand has had only limited effect on boosting Taiwan Semiconductor’s performance.
On Thursday afternoon, July 20th, Beijing time, the world's largest semiconductor manufacturer, Taiwan Semiconductor, announced its Q2 financial results as of June 30. $Taiwan Semiconductor (TSM.US)$
The earnings report showed that Taiwan Semiconductor's revenue for this quarter was NT$480.84 billion, a year-on-year decline of 10% (or 13.7% in dollar terms),marking the first quarterly profit decline in four years and the fourth consecutive month of falling revenue.Net profit for this quarter dropped by23%, from NT$237 billion in the same period last year to NT$181.8 billion. On a quarter-over-quarter basis, revenue fell by 5.5%, while net profit declined by 12.2%.
However, considering the overall sluggishness of the industry, Taiwan Semiconductor has already shownFull cold resistance capability, this season's revenue was generally in line with the previous earnings guidance, and although net profit saw a significant decline, it was better than Wall Street’s consensus expectation of a 27% drop.。
In terms of profitability, this quarter's gross margin was 54.1%, operating margin was 42.0%, and net profit margin was 37.8%, all showing a slight decline from the previous quarter.
From the perspective of wafer process technology, shipments of the 5-nanometer process accounted for 30% of total wafer revenue this quarter; the 7-nanometer process accounted for 23%, and...