Taiwan Semiconductor Manufacturing NYSE:TSM, the world's largest contract chipmaker, reported second-quarter net income of NT$706.56 billion ($22.36 billion), up 77.4% from a year earlier, on revenue of NT$1,270.38 billion ($40.20 billion), up 36.0%. Diluted earnings were NT$27.25 per share ($4.31 per ADR unit). Shares fell 3.81% premarket.
Gross margin came in at 67.7% and operating margin at 60.3%, both supported by what CFO Wendell Huang called "strong demand for our leading-edge process technologies." The most advanced nodes carried the quarter: 5-nanometer made up 33% of wafer revenue and 3-nanometer another 30%. Adding 7-nanometer at 11%, technologies at 7-nanometer and finer made up 77% of the total. The 2-nanometer node accounted for 3% of wafer revenue as its ramp gets underway.
TSMC guided third-quarter revenue to between $44.6 billion and $45.8 billion, with slightly lower gross margin of 65% to 67% and operating margin of 56% to 58%.