[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4489 followers Created: 2025-07-18 01:11:11 UTC $TSM Taiwan Semiconductor Manufacturing Company Limited Earnings Call Key Highlights: (1/2) 📈 Strong Q2 2025 Financial Performance Q2 revenue rose XXXX% QoQ in USD terms to $XXXX billion, exceeding prior guidance, driven by strong demand for 3nm and 5nm technologies despite FX headwinds. Gross margin declined slightly by XXX percentage points to 58.6%, impacted by foreign exchange losses and initial dilution from overseas fabs. Operating margin improved to 49.6%, aided by operating leverage, while EPS grew XXXX% YoY to TWD XXXXX. Return on equity was 34.8%. TSMC ended Q2 with TWD XXX trillion ($90 billion) in cash and marketable securities; CapEx spending stood at TWD XXX billion ($9.6 billion USD equivalent). 🔬 Advanced Technology Leadership and Revenue Mix 3nm contributed XX% of wafer revenue, 5nm contributed 36%, and 7nm accounted for 14%, with technologies 7nm and below making up XX% of total wafer revenue. HPC platform grew XX% QoQ, accounting for XX% of total revenue. Smartphone revenue rose X% QoQ (27% share), while IoT and DCE each represented X% and X% respectively. Automotive remained flat at 5%. 📉 Impact of Foreign Exchange Rates on Profitability NT dollar appreciated XXX% sequentially, reducing Q2 reported revenue and gross margin by an estimated XXX% and 180bps, respectively. With further appreciation expected in Q3, gross margin guidance was set at 55.5%–57.5% and operating margin at 45.5%–47.5%. Management reaffirmed a structurally achievable long-term gross margin target of ≥53%, highlighting its multi-factor margin management framework. 🏭 Capital Expenditures and Capacity Strategy 2025 CapEx remains unchanged at $38–$42 billion. Investments focus on future node ramps and structural demand rather than current year revenue. CapEx per area for N2 is higher than previous nodes, but management expects better ROI than N3 due to higher pricing and yield performance. TSMC maintains that capital intensity will remain consistent and declines in CapEx are unlikely due to ongoing global buildouts and long-term demand. 🚀 3nm and 5nm Node Demand Outlook Both 5nm and 3nm nodes remain at full capacity, driven by HPC and AI-related demand, with ongoing conversion from N5 to N3. Management indicated capacity across all leading-edge nodes (N7 and below) is extremely tight, and efforts to “narrow the gap” between supply and demand are ongoing. Tool and fab flexibility allows conversion between nodes; for example, excess N7 capacity is being repurposed for N5 due to sustained tightness. 🌐 Global Manufacturing Footprint Expansion U.S.: Total of six fabs planned in Arizona with N4 already in production and N3 fab construction complete. N2 and A16 fabs under development. Cluster will host XX% of advanced capacity post-completion. Japan: Kumamoto specialty fab is in production; second fab to begin construction later in 2025. Europe: Specialty fab in Dresden progressing with strong governmental support. Taiwan: XX new wafer fabs and X advanced packaging facilities planned, including N2 fabs in Hsinchu and Kaohsiung. 🤖 AI-Driven Demand and Platform Momentum Cloud AI demand continues to exceed expectations with AI accelerators forecasted to grow at a ~45% CAGR over five years, though no upward revision to guidance was issued this quarter. On-device AI progressing steadily; die sizes for edge devices are increasing 5%–10%, though impact will materialize over the next 6–12 months. Humanoid robotics seen as a long-term semiconductor growth opportunity, primarily involving advanced sensors and compute, though still in early stages. 🧠 Advanced Technology Roadmap: N2, N2P, A16, and A14 N2 remains on schedule for H2 2025 volume production; offers 10–15% speed or 20–30% power improvements over N3E. N2P and A16 both planned for H2 2026 production; A16 further enhances power and density—suited for advanced HPC use. A14 (with second-gen nanosheet) to enter volume production in 2028, targeting another full node leap with Super Power Rail enhancements in 2029.  XXX engagements  **Related Topics** [losses](/topic/losses) [united states dollar](/topic/united-states-dollar) [quarterly earnings](/topic/quarterly-earnings) [$0981hk](/topic/$0981hk) [$2330tw](/topic/$2330tw) [taiwan](/topic/taiwan) [$tsm](/topic/$tsm) [taiwan semiconductor](/topic/taiwan-semiconductor) [Post Link](https://x.com/LongYield/status/1946014853803434225)
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LongYield @LongYield on x 4489 followers
Created: 2025-07-18 01:11:11 UTC
$TSM Taiwan Semiconductor Manufacturing Company Limited Earnings Call Key Highlights: (1/2)
📈 Strong Q2 2025 Financial Performance
Q2 revenue rose XXXX% QoQ in USD terms to $XXXX billion, exceeding prior guidance, driven by strong demand for 3nm and 5nm technologies despite FX headwinds.
Gross margin declined slightly by XXX percentage points to 58.6%, impacted by foreign exchange losses and initial dilution from overseas fabs.
Operating margin improved to 49.6%, aided by operating leverage, while EPS grew XXXX% YoY to TWD XXXXX. Return on equity was 34.8%.
TSMC ended Q2 with TWD XXX trillion ($90 billion) in cash and marketable securities; CapEx spending stood at TWD XXX billion ($9.6 billion USD equivalent).
🔬 Advanced Technology Leadership and Revenue Mix
3nm contributed XX% of wafer revenue, 5nm contributed 36%, and 7nm accounted for 14%, with technologies 7nm and below making up XX% of total wafer revenue.
HPC platform grew XX% QoQ, accounting for XX% of total revenue. Smartphone revenue rose X% QoQ (27% share), while IoT and DCE each represented X% and X% respectively. Automotive remained flat at 5%.
📉 Impact of Foreign Exchange Rates on Profitability
NT dollar appreciated XXX% sequentially, reducing Q2 reported revenue and gross margin by an estimated XXX% and 180bps, respectively.
With further appreciation expected in Q3, gross margin guidance was set at 55.5%–57.5% and operating margin at 45.5%–47.5%.
Management reaffirmed a structurally achievable long-term gross margin target of ≥53%, highlighting its multi-factor margin management framework.
🏭 Capital Expenditures and Capacity Strategy
2025 CapEx remains unchanged at $38–$42 billion. Investments focus on future node ramps and structural demand rather than current year revenue.
CapEx per area for N2 is higher than previous nodes, but management expects better ROI than N3 due to higher pricing and yield performance.
TSMC maintains that capital intensity will remain consistent and declines in CapEx are unlikely due to ongoing global buildouts and long-term demand.
🚀 3nm and 5nm Node Demand Outlook
Both 5nm and 3nm nodes remain at full capacity, driven by HPC and AI-related demand, with ongoing conversion from N5 to N3.
Management indicated capacity across all leading-edge nodes (N7 and below) is extremely tight, and efforts to “narrow the gap” between supply and demand are ongoing.
Tool and fab flexibility allows conversion between nodes; for example, excess N7 capacity is being repurposed for N5 due to sustained tightness.
🌐 Global Manufacturing Footprint Expansion
U.S.: Total of six fabs planned in Arizona with N4 already in production and N3 fab construction complete. N2 and A16 fabs under development. Cluster will host XX% of advanced capacity post-completion.
Japan: Kumamoto specialty fab is in production; second fab to begin construction later in 2025.
Europe: Specialty fab in Dresden progressing with strong governmental support.
Taiwan: XX new wafer fabs and X advanced packaging facilities planned, including N2 fabs in Hsinchu and Kaohsiung.
🤖 AI-Driven Demand and Platform Momentum
Cloud AI demand continues to exceed expectations with AI accelerators forecasted to grow at a ~45% CAGR over five years, though no upward revision to guidance was issued this quarter.
On-device AI progressing steadily; die sizes for edge devices are increasing 5%–10%, though impact will materialize over the next 6–12 months.
Humanoid robotics seen as a long-term semiconductor growth opportunity, primarily involving advanced sensors and compute, though still in early stages.
🧠 Advanced Technology Roadmap: N2, N2P, A16, and A14
N2 remains on schedule for H2 2025 volume production; offers 10–15% speed or 20–30% power improvements over N3E.
N2P and A16 both planned for H2 2026 production; A16 further enhances power and density—suited for advanced HPC use.
A14 (with second-gen nanosheet) to enter volume production in 2028, targeting another full node leap with Super Power Rail enhancements in 2029.
XXX engagements
Related Topics losses united states dollar quarterly earnings $0981hk $2330tw taiwan $tsm taiwan semiconductor