Taiwan Semiconductor Q2 results in focus as company eyes expansion plans
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Taiwan Semiconductor (NYSE:TSM) is scheduled to announce second-quarter earnings results on Thursday, July 20th, before market open.
The consensus EPS Estimate is $1.08 and the consensus revenue Estimate is $15.42B (-15.1% Y/Y).
Over the last three months, earnings per share estimates have seen one upward revision and two downward. Revenue estimates have seen four upward revisions and 17 downward.
The chip giant's stock rose +2.36% on April 20 despite mixed first-quarter results and offering a downtrodden outlook for the second quarter.
Year-to-date, the company's stock has surged ~39% amid a surge in technology stocks driven by the rise of AI.
Nvidia (NVDA), one of the tech companies for which TSM produces chips, saw its market cap breach $1T in June driven by several announcements linked to AI after its stunning first-quarter results and guidance in May. The tech giant's CEO, Jensen Huang, also feels "perfectly safe" about relying on Taiwan for its manufacturing needs, according to a report.
TSM has been looking to expand its global presence, as a report in May suggested that the company was in talks with partners to build a manufacturing fab worth roughly $11B in Germany.
The company is also increasing the number of workers going from Taiwan to Arizona in an effort to give its $40B investment a "fast ramp up." The construction of the plant being built in Phoenix, Arizona started in June 2021 and is expected to start production in 2024, marking TSM's first U.S.-based plant in 20 years.
The company is also considering an increase of 3-6% in prices for its advanced process manufacturing starting in January 2024.
Earlier in July, TSM noted that it did not expect any "direct impact" to its business after China's recent export curb of gallium and germanium. In June, the Biden administration, reportedly, indicated that major South Korean and Taiwanese chip makers would still be allowed to operate and expand dealings in China sans sanction from the U.S.
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