TSMC's financial report? Market optimistic, AMD 7nm is expected to expand orders

TSMC will hold its second quarter earnings conference in Taipei tomorrow (18th), which happens to coincide with the arrival of Typhoon Danas in Taiwan. TSMC has not announced any postponement of the conference, and the market is keeping a close eye on six key points. It is expected that TSMC's statement will affect the market conditions in the second half of the year.

However, on the eve of TSMC's earnings conference, industry insiders revealed that AMD's customers are currently placing orders very enthusiastically, and the new computer processor (CPU) Ryzen 3000 series has set off a buying frenzy as soon as it went on sale, with the market share in Japan and South Korea strongly surpassing Intel's 14nm process CPU. Industry insiders estimate that AMD's 7nm orders are expected to expand and boost TSMC's performance in the second half of the year.

TSMC Chairman Liu Deyin pointed out at a recent shareholders meeting that the Sino-US trade war has indeed impacted customer demand, but he is still optimistic about the quarter-on-quarter improvement in operations this year. As for whether the full-year revenue growth target will be adjusted, he will update everyone in the financial report.

In addition, the semiconductor industry's economic outlook in the second half of the year, the impact of the Sino-US trade war and customer adoption of various process technologies, the amount of capital expenditure this year, and the hottest topic in recent days, the Japan-South Korea trade war, are believed to be the key points of concern for industry insiders at the earnings conference.

It is worth noting that Deputy General Manager, Chief Financial Officer and Spokesperson He Limei recently announced that she will resign from the positions of Chief Financial Officer and Spokesperson to focus on Eurasian business. Her original position will be taken over by Deputy Chief Financial Officer Huang Renzhao. Whether Huang Renzhao will attend the financial report meeting has also become another focus.

The second quarter is traditionally TSMC's off-season. Industry insiders believe that TSMC's revenue reached NT$240.998 billion (same unit below), a quarterly increase of 10.19% and an annual increase of 3.3%, which was better than expected; the cumulative revenue in the first half of the year reached NT$459.703 billion, a year-on-year decrease of 4.5%.

According to reports issued by several foreign companies recently, TSMC's revenue in the third quarter is expected to grow by 15-20% quarter-on-quarter as 7nm starts to contribute to revenue in the second half of the year. Citigroup Global Securities pointed out that under the peak season effect in the third quarter, TSMC's 16 and 7nm process capacity is expected to be fully loaded. In the fourth quarter, Huawei's orders will be returned, and the 7nm utilization rate will continue to be fully loaded. The second half of the year's operations can still be optimistic.