Taiwan Semiconductor Manufacturing Reports Record-Breaking Earnings Growth in Q4 of FY2022
January 31, 2023
Earnings report
Taiwan Semiconductor Manufacturing ($TWSE:2330) (TSMC) is a leading semiconductor foundry and one of the largest semiconductor companies in the world. On December 31 2022, TSMC reported their earnings results for the fourth quarter of FY2022, ending January 12 2023. The results showed record-breaking growth, with total revenue for the quarter coming in at TWD 295.9 billion, representing a 78.0% year-over-year increase. Net income reported was TWD 625.5 billion, a 42.8% year-over-year increase. The fourth quarter of FY2022 was TSMC’s most profitable quarter to date and marked the third consecutive quarter of record-breaking revenue growth. TSMC attributed the impressive results to strong demand for their products, as well as their continued focus on improving operational efficiency.
The strong performance was also driven by TSMC’s ability to capitalize on the booming semiconductor market. During the quarter, TSMC saw increased demand for its products from a wide range of customers, including tech giants such as Apple and Samsung, as well as other leading tech companies. Furthermore, TSMC has been able to diversify its revenue sources by further expanding into new markets and developing new products. Overall, TSMC’s record-breaking earnings growth in the fourth quarter of FY2022 is a testament to the company’s success in taking advantage of the booming semiconductor market. With its strong operational efficiency and diversified revenue sources, TSMC looks poised to continue its impressive performance into the future.
Stock Price
The company’s stock opened at NT$487.5 and closed at NT$486.5, up by 0.4% from its prior closing price of NT$484.5. Overall, the company’s strong results were driven by robust demand for its products and services, as well as its efficient manufacturing processes and cost containment measures. TSMC’s performance has been consistently strong throughout the year, demonstrating the company’s sound financial standing and ability to generate impressive profits. Investors have responded positively to the news, pushing the stock up 0.4%. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Taiwan Semiconductor Manufacturing. More…
| Total Revenues | Net Income | Net Margin |
| 2.26M | 1.02M | 44.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Taiwan Semiconductor Manufacturing. More…
| Operations | Investing | Financing |
| 1.61M | -1.19M | -195.91k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Taiwan Semiconductor Manufacturing. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.96M | 2M | 105.59 |
Key Ratios Snapshot
Some of the financial key ratios for Taiwan Semiconductor Manufacturing are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.4% | 25.1% | 33.3% |
| FCF Margin | ROE | ROA |
| 23.1% | 17.2% | 9.5% |
VI Analysis
Taiwan Semiconductor Manufacturing (TSMC) is a low-risk investment, as evidenced by its VI Risk Rating. The company has a solid financial foundation and a strong business model, which are reflected in its fundamentals. The VI App has detected two risk warnings in TSMC’s income sheet and balance sheet, which can be seen by becoming a registered user. TSMC is a leader in the semiconductor industry, producing highly specialized integrated circuits and other components. The company’s core business is in the production of integrated circuits, including those used in smartphones, computers, gaming systems, and other consumer electronics. TSMC’s products are used by a variety of companies around the world and the company has a well-established reputation for quality and reliability. The company has a well-defined investment strategy that focuses on sustainable growth and long-term value creation. It also has a strong balance sheet, with ample liquidity and low debt levels. The company has an experienced management team that is focused on achieving its goals and creating value for shareholders. Finally, TSMC has a strong commitment to corporate governance and has instituted policies to ensure transparency and accountability. The company is committed to the highest standards of corporate governance and regularly reviews its policies and procedures to ensure that they remain appropriate for the company’s operations. Overall, given its strong fundamentals, low risk profile, and commitment to corporate governance, Taiwan Semiconductor Manufacturing is an attractive investment option. The two risk warnings mentioned above should be taken into account when evaluating the company’s prospects, but they should not deter potential investors from considering TSMC as an option. More…
VI Peers
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is one of the world’s leading semiconductor suppliers, and its competitors include Sondrel (Holdings) PLC, Rockley Photonics Holdings Ltd, and Parade Technologies Ltd. These companies are all major players in the rapidly evolving semiconductor industry, offering innovative solutions and specialized products.
– Sondrel (Holdings) PLC ($LSE:SND)
Sondrel (Holdings) PLC is a global leader in the design, development and manufacture of advanced integrated circuits. The company has been in business for over 25 years and has a strong reputation for providing innovative, reliable and cost-effective solutions to its clients. As of 2023, Sondrel (Holdings) PLC has a market capitalization of 26.69 million and a Return on Equity of 34.78%. This indicates that the company is performing well and is able to generate returns on its investments. The company’s strong financial performance is indicative of its ability to effectively manage its business operations, create value for its shareholders, and provide quality services to its customers.
– Rockley Photonics Holdings Ltd ($TPEX:4966)
Parade Technologies Ltd is a leading provider of high-speed interface, video and display connectivity products. With a market cap of 70.72B, Parade Technologies is well-positioned to capitalize on continued industry trends and maintain its position as a leader in the global technology sector. Furthermore, with a Return on Equity of 20.34%, the company is well-positioned to generate value for its shareholders through a combination of organic and strategic growth initiatives.
Summary
Investors have been bullish on Taiwan Semiconductor Manufacturing (TSM) after the company reported its earnings results for the fourth quarter of FY2022, ending January 12 2023. Revenue for the quarter was an impressive 78.0% year-over-year increase to TWD 295.9 billion, while net income was 42.8% higher year-over-year at TWD 625.5 billion. The strong financial performance of TSM has been driven by a number of factors, including strong demand in the semiconductor industry, robust manufacturing capabilities, and the company’s focus on innovation and new product development. Overall, TSM is well-positioned to continue its impressive financial performance in the coming years.
The company’s strong financial results and its focus on innovation are likely to attract investors, who will be looking to capitalize on the potential of this industry leader. With its continued growth and expansion, TSM is expected to remain an attractive investment option for both long-term and short-term investors.
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