Taiwan Semiconductor Manufacturing (TSM) Q2 2023 Earnings Call Transcript Summary
In the recent earnings call for Taiwan Semiconductor Manufacturing (TSM), the company presented both bullish and bearish points that could impact its future stock price.
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Strong ramp of three-nanometer technologies in the second half of the year
2. Revenue expected to grow between 15% and 20% CAGR over the next several years
3. Forecasted growth of server AI processor demand at close to 50% CAGR in the next five years
4. HPC platform expected to be the main engine and largest incremental contributor to TSMC's long-term growth
5. N3E has passed the qualification and achieved performance and yield target, starting volume production in Q4 this year
6. N2 technology development is progressing well and on track for volume production in 2025
7. High level of customer interest and engagement in N2 from both HPC and smartphone applications
8. TSMC's long-term gross margin of 53% and higher and sustainable ROE of greater than 25% is achievable
9. AI processor demand is strong
10. TSMC's strength in large die size
Bearish Points:
1. Second quarter revenue decreased 5.5% sequentially
2. Gross margin decreased 2.2 percentage points sequentially to 54.1%
3. Lower capacity utilization due to semiconductor cyclicality
4. Full year 2023 revenue expected to decline around 10% in U.S. dollar terms
5. Foundry industry expected to decline mid-teens in 2023
6. Production schedule of N4 process technology pushed out to 2025 due to insufficient skilled workers
7. Initial cost of overseas fabs are higher than TSMC's fabs in Taiwan
8. Tight capacity for advanced packaging, especially CoWoS, expected to be released towards the end of next year
9. Weaker than expected China economy recovery
10. Weaker macroeconomy impacting overall market segment
For more information about Taiwan Semiconductor Manufacturing's earnings call, you can read the relevant news: [Taiwan Semiconductor Manufacturing (TSM) Q2 2023 Earnings Call Transcript](https://www.fool.com/earnings/call-transcripts/2023/07/20/taiwan-semiconductor-manufacturing-tsm-q2-2023-ear/)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
By next year TSMC will be more than a year behind. The silver lining for TSMC is their capacity, ecosystem and PDK will keep them as the number one foundry for the foreseeable future. They also will retain a lead in specific segments like ultra low power mobile since their HD cells have excellent characteristics at ISO density compared to Intel.
Buy shares in TSMC TSM (I think their incredibly dominant position in semiconductor manufacturing will make this stock really really valueable over the next 10 years)
So tell me how INTC plans on gaining competitive advantage in the fab game when they are 10 years behind Samsung which is 3-5 years behind TSMC?
Bought more on the dip. If you can wait you will be rewarded......
Does the author choose to be bullish or bearish?