TSMC’s 3-nanometer tech drives up Q4 net revenue by 14.4%

Here are three takeaways from the fourth quarter 2023 results of Taiwanese semiconductor firm TSMC.

1. Net revenue up on the quarter, but down for the year

Net revenue grew by 14.4% to US$19.6 billion in Q4 compared to the previous quarter, driven by the company’s 3-nanometer tech. This indicates that TSMC’s advanced tech are gaining traction in the market and contributing to revenue growth.

However, overall net revenue for 2023 declined by 8.7% year on year to US$69.3 billion.

2. Lower gross margins

Gross margin in Q4 was 53%, 1.3 percentage points lower compared to Q3. This is primarily due to margin dilution from the ramp of the 3-nanometer technology.

For the full year, the company’s gross margin was 54.4%, down 5.2 percentage points from 2022.

3. Full-year net income of US$26.9 billion

Net income attributable to shareholders increased quarter on quarter by 13.1% in Q4, reaching US$7.5 billion. However, it decreased by 19.3% compared to the same quarter last year.

Meanwhile, net income for 2023 as a whole fell by 17.5% year on year to US$26.9 billion.

This article was written with the help of AI.