$Taiwan Semiconductor Manufacturing(TSM)$ In the second quarter, TSM reported revenue growingby 36.6% to $18.16 billion. The gross margin topped 59.1%. In Q3/2022, the company expects revenue in the range of $19.8 billion to $20.6 billion. The gross profit margin is up to 59.5%.

Taiwan Semiconductor’s customers will decrease their inventory levels this year. The inventory correction is necessary to adjust for macroeconomic uncertainties. It will not hurt long-term demand.

TSM leads in the advancements of semiconductors used in specialty technologies. It has a strong high-performance computing portfolio. In addition, it has strategic customer relationships. This keeps its capacity tight, maximizing operating margins.

TSM is investing smartly to prepare for 3-nanometer manufacturing. Its capital expenditures will prepare it for future opportunities. It already planned 2023 expenses. This will position the firm to grow by 15% to 20% on a compounded annual growth rate.