One of the world's largest chip manufacturers, Taiwan Semiconductor Manufacturing Co. (TSMC), has released its recent second quarter (Q2 2024) financial results finding success in the market. The company reported improved net sales for this quarter with massive gains, with many aspects of its numbers seeing immense success and growth.
That being said, the company is considering an upcoming price hike amongst its customers for better tech development, as well as rising costs in manufacturing.
TSMC Reports Success in Q2 2024 With Significant Improvements
(Photo : SAM YEH/AFP via Getty Images)
TSMC released its Q2 2024 earnings result (via TechRadar) and reported significant numbers that show massive growth for the 9th-ranked most valuable companies in the world. In this quarter alone, the company's net sales reached $20.88 billion (NT$673.51 billion) which is a 40.1 percent increase compared to last year's NT$ 480.84 billion.
Moreover, its gross profit saw a 37.6 percent year-over-year increase and raked in $11.10 billion (NT$ 358.13 billion) from $8.07 billion (NT$ 260.20 billion).
Its operational income also saw a 41.9 percent rise, increasing to as much as $8.88 billion (NT$ 286.56 billion), alongside its net income numbers of a 36.3% increase of $7.68 billion (NT$ 247.85 billion) from $5.64 billion (NT$181.80 billion).
TSMC's Chairman and CEO Dr. C.C. Wei shared with Wall Street analysts that the company will soon consider a price hike for its products. This includes reasons like the more complex processes of its future chips, alongside a leading load, global fiber expansion, other cost-inflation charges, and Taiwan's recent electricity price hikes.
This price hike could lead to more expensive devices using TSMC's semiconductors which include Apple, Intel, Nvidia, and more.
TSMC and Its Renowned Chip Manufacturing
TSMC is best known for its massive product development in semiconductors and processors, attributed to the top tech developments in the market across different devices and platforms. First off, TSMC is best regarded for manufacturing Apple's smartphone and tablet SoC, the A-series chipsets, but the company gained more acclaim for creating Cupertino's Silicon, the M-series.
Instead of mainly conducting its business in Taiwan, the company has decided to branch out to other locations, with an upcoming chip manufacturing plant in Arizona soon to rise. Recently, the company received a $6.6 billion boost from the US government that would help fast-track US chip manufacturing, with TSMC eyeing a 2025 start to manufacture 4nm chipsets in three fabrication plants in Phoenix.
Recently, TSMC raised its valuation further than imagined and the company managed to grab ahold of the eighth spot in the most valuable companies in the world for a short time. As the company shared its recent Q2 earnings result, TSMC basks in the achievement of another dominant quarter, but there will be an impending price hike for customers soon, as part of continuing its stellar manufacturing.
