To The Moon

Q&A（Question-and-Answer Session）is a session after the company's prepared remarks where institutional investors and analysts ask management questions. In this dialogue, you may find some valuable information that might affect the stock price in the following weeks.

Now let's look at some key points from TSM Q3 2022 Q&A Session Transcript  $Taiwan Semiconductor Manufacturing(TSM)$

Q:The question is on N7 and N6, this utilization slack that we are observing. Could we give a little bit more detail on why that is happening and why we think this is short-lived, a couple of quarters issue and we get a pick back in the utilization in the second half of the year?

A:Demand dropped because of market becomes soft. As we said, in the weakness in the smartphone and PCs. And also a big factor is our customers' product schedule delay. And all in all, put all together, so we think that our utilization has been affected in fourth quarter this year and all the way to the first half of 2023.

For the longer term, we continue to work closely with our customers. And actually, let me also say that this is a cyclical issue. So it will pick up anyway. And we believe we will pick up in the second half of 2023. And for the longer term, we continue to work closely with our customers to develop specialty and differentiated technology to drive additional wave of structural demand from consumer, RF, connectivity, et cetera, and other application to backfill our N7, N6 ca

Q:The question would be on the CapEx outlook. Now that we bring down the CapEx slightly for 2022, could you talk a little bit about what is the outlook direction for 2023 at least, if not absolute numbers, but just direction? Are we going to be flattish or it's likely to be going down?

A:For 2023 CapEx, it is too early to comment. We will provide you with a specific guidance in January. However, as we said, we have tightened up our 2022 CapEx to reflect the current medium outlook, as well as two delivery issues.

Looking ahead to 2023, we will continue to be careful and manage our business prudently given the near-term uncertainties. We will adjust and tighten up our capital spending where appropriate, but we will continue to work closely with our customers to invest for the long-term structural market demand profile to support their growth.

Q:Could you also give us an update on the schedule for the new fabs, Cauchon, Kumamoto, Nanjing and Arizona? Is there any change in the schedules in terms of these fabs coming into production?

A:Let me say that Arizona fab work will continue and on schedule. There's no doubt about it because this is a N5 family which still have a very strong demand.

And for Nanjing we just get our one-year authorization for 28-nanometer expansion. So it is on schedule also. For Gaozong, initially, we planned 2 fab at the beginning of 28-nanometer expansion and the N7. Now N7 has been adjusted. And so but 28-nanometer expansion is continued and on schedule.And also Kumamoto.

The above Q&A are highlights that are edited for brevity. Click here for the full TSM Q3 2022 Earnings Call Transcript.​​​

If you want to know more details, you can click here to re-watch the TSM Q3 2022 Earnings Conference Call