TSMC's revenue in November is $32 billion, a drop of 3.1% over the previous month

On the afternoon of December 10, TSMC reported a combined revenue of $32 billion in November, a drop of 3.1% over the previous month but an increase of 5.6% year-on-year. A total combined revenue before December is $305 billion, an increase of 6.1% year-on-year.

    The combined revenue in October is $33 billion, an increase of 7% over the previous month and 7.4% year-on-year, second highest in the past, but a decline in November. Combined revenue totally in October and November is $64.9 billion.

    The growing shipment of 7 nm process is an important motive power of TSMC in the fourth quarter. According to the previous forecast, the Q4 revenue is $93.5-94.5 billion, with a quarterly increase of 10.1-11.3%, gross interest rate of 47-49%, and operating interest rate of 36-38%, which is equivalent to Q3 revenue. Based on the exchange of one dollar for 30.8 NT, revenue will reach 2,879.8-2,910.6 billion NT with a quarterly increase of 10.6-11.8%, which is expected to reach a record high in  single-quarter revenue.

    In response to this year's outlook, as the Q4 performance will be lower than original expected, TSMC downgraded its annual outlook for three times this year, therefore, it’s estimated that the revenue in dollar will grow 6-7% compared with last year, while lower than original target of 7-9%. However, TSMC is optimistic of next 5 years of operating outlook, expecting an increase of 5-10% in dollar. 

    According to the latest report from foreign capital circle, it is estimated that TSMC's operating revenue in the first quarter of next year will be affected by factors such as the traditional off-season, poor sales of Apple and non-Apple smartphones. Thus, the single-quarter revenue is feared to decline by 10-15% compared with the current quarter, the largest recession in the same period.