TSMC revenue exceeds guidance as 2nm ramp weighs on margins

TSMC reported third-quarter revenue of US$46.72 billion on October 15, exceeding its US$44.6 billion to US$45.8 billion guidance, according to an analysis on note.com citing official earnings materials. Revenue rose 16.2% sequentially and 41.2% year over year. Gross margin fell 1.3 percentage points sequentially to 66.4%, primarily because of the initial ramp-up of its N2, or 2nm, chipmaking process. High-performance computing accounted for 68% of revenue. TSMC forecast fourth-quarter revenue of US$52.3 billion to US$54.3 billion. Third-quarter capital expenditure fell to US$13.84 billion from US$15.70 billion, limiting what the revenue growth alone signals about equipment demand.