TAIPEI - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), the world's leading semiconductor manufacturer, has reported a substantial increase in its consolidated net revenue for October 2023. According to a Form 6-K report filed with the SEC on Nov. 10, TSMC's revenue for the month reached NT$243.20 billion. This figure represents a marked 34.8% increase from September 2023 and a 15.7% year-over-year growth from October 2022.
While the October results indicate a strong performance, the company's revenue trajectory for the year presents a different picture. TSMC's total revenue from January to October 2023 amounted to NT$1,779.41 billion, which is a 3.7% decrease when compared to the same period last year.
In addition to its revenue figures, TSMC disclosed financial support provided to its subsidiaries. Notably, TSMC Arizona and TSMC Nanjing have received substantial loans from their parent companies, with outstanding amounts reported at NT$97,305,000 and NT$39,006,000 respectively. These loans are part of TSMC's strategy to bolster its global operations and expansion efforts.
The company has also extended guarantees to several of its subsidiaries, including TSMC North America, TSMC Global, TSMC Arizona, TSMC Development, and TSMC Design Technology Japan. Such financial backing underscores TSMC's commitment to its international entities and their respective markets.
Furthermore, TSMC's report detailed its financial derivative transactions for October 2023. The company engaged in various forwards contracts through entities such as TSMC, TSMC China, and TSMC Nanjing that did not apply hedge accounting. Additionally, it held forwards contracts by TSMC and futures contracts by TSMC Global that did apply hedge accounting. These financial instruments are used by the company to manage risks associated with fluctuations in foreign exchange rates and commodity prices.
The detailed Mark to Market of Outstanding Contracts data was also provided in the report, offering insights into the valuation of these derivatives based on current market conditions.
TSMC's latest financial disclosures come at a time when the semiconductor industry faces dynamic challenges and opportunities. The company's performance is closely watched by investors and industry analysts alike as an indicator of the sector's health and future prospects.
InvestingPro Insights
Drawing from real-time data from InvestingPro, TSMC's market capitalization stands at an impressive 447.1 billion USD. The company's Price-to-Earnings (P/E) ratio is 16.13, while the adjusted P/E for the last twelve months as of Q3 2023 is slightly higher at 16.51. Revenue for the same period is reported at 66997.44 million USD, reflecting a growth rate of 4.1%.
InvestingPro Tips suggest that TSMC yields a high return on invested capital and has a track record of consistently increasing earnings per share. The company has also raised its dividend for three consecutive years, bolstering its appeal to investors seeking steady income. Moreover, 16 analysts have revised their earnings upwards for the upcoming period, signaling strong market confidence in TSMC's financial performance.
In the realm of semiconductors and semiconductor equipment, TSMC is a prominent player. The company's stock generally trades with low price volatility, making it a potentially stable investment. Additionally, TSMC's cash flows can sufficiently cover interest payments, indicating robust financial health.
In conclusion, with over 20 additional tips and insights available on InvestingPro, investors can gain a comprehensive understanding of TSMC's financial landscape and make informed decisions.
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