Behind TSMC's stock price peak" The chief financial officer said that Taiwan's electricity bill is "the most expensive in the world." How does Taipower fit in?

Semiconductor leader TSMC held a press conference yesterday and announced the third quarter financial report and fourth quarter financial forecast targets. In addition, TSMC Chairman Wei Zhejia also said at the conference that the demand for AI is real and that TSMC will be very healthy in the next five years.
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halfTSMC, the main director, held a corporate briefing yesterday (17th) and announced the third quarter financial report and fourth quarter financial forecast targets not only that the results that had not yet risen payment in ADR (American Depositary Receipt) TSMC increased 12% at one time, The stock price of TSMC rose this morning The price of the Chinese share even rose to 1,100 yuan, hitting the highest level , closing at 1,085 yuan, an increase of 4.83%.

source: Yahoo stock market

Dharma talks focus on reconciliation

In addition, according to the Economic DailyreportThis TSMC legal meeting, not only the third quarter financial report and fourth quarter financial forecast were attractive, but Chairman Wei Zhejia also assured investors that TSMC will be very healthy in the next five years we have:

Highlights of the third quarter financial report and fourth quarter forecast

In the third quarter, the accumulated revenue was 759.69 billion yuan, a quarterly increase of 12.8% and an annual increase of 39%. a quarterly increase of 31.2% and an annual increase of 54.2%, setting a new record.

If measured in US dollars, US dollar revenue in the third quarter was US$23.5 billion, an annual increase of 36% and a quarterly increase of 12.9% TSMC’s gross profit margin in the third quarter 57.8%, operating profit margin was 47.5%; , and the net profit margin after tax was 42.8%.

Based on an assessment of current business conditions, TSMC estimates that its US dollar revenue in the fourth quarter will be approximately US$26.1 to US$26.9 billion, based on an exchange rate assumption of NT$32 to US$ 1, continues to hit a new high, with a quarterly increase of 11.1 ~ 14.5%, adjusted to Average Value increased by 13% quarter-to-quarter TSMC believes that the gross profit margin in the quarter quarter of this year 57% to 59%, and the operating profit rate will be 46.5% to 48.5%.

Wei Zhejia: The demand for AI is real and will be very healthy in the next five years

During the conference, in addition to financial reports, analysts also paid special attention to whether the demand for AI is real. Don’t worry that AI will bubble. In this regard, President Wei Zhejia said sternly,“My answer is true”he said:

All the AI innovators are working with TSMC and the demand is just starting One of my top customers said the demand is crazy right now and it’s just starting and it lasts several years.

In addition, regarding the prospects for the semiconductor industry, Wei Zhejia reiterated that he would maintain his views in July.

In addition, TSMC has previously estimated that the compound annual growth rate (CAGR) of revenue from 2021 to 2026 will be between 15 and 20%.

TSMC has had very good growth in the last five years.

Taiwan’s electricity bills are the highest among factories in the world

However, in the face of periodic power shortages in Taiwan, Chief Financial Officer Huang Zhaoren said at the meeting that the increase in electricity prices in Taiwan is one of the important factors affecting the overall profit margin. TSMC.

Huang Renzhao said that in the latest electricity price change in October this year, TSMC’s electricity costs increased by 14%, which is already the highest price in the global operating area:

In recent years, the price of electricity used by TSMC in Taiwan has doubled.

Huang Renzhao expects that the increase in electricity costs and other costs will affect at least 1% of the overall profit margin performance in 2025.

Taipower answers electricity bill issues

Taipower also answered the question about the electricity bill that TSMC said it would raise yesterday afternoon. According to “Free Finance”reportTaipower made three defining points:

Currently, TSMC’s overseas sites include Japan, the United States, Germany and other regions. Taipower explained that after an investigation, several countries are still changing electricity prices this year, and after changes, Taiwan’s industrial electricity prices are still lower than those in Japan, South Korea, Germany and places others, but they are actually higher than those in the United States. States.
Taipower said TSMC has its own business model and could negotiate with the Japanese government to fight for lower electricity prices. In addition, the electricity industry in Japan and the United States is complex For example, Japan’s electricity industry has been liberalized, and each state has its own electricity company in the United States, the Taipower comparison ranking is based on “national industry average electricity price” in Japan, the United States, and other places. It is not TSMC’s reference to local electricity prices. The unit price is after negotiation.
In addition, Taipower also said that TSMC is a 24-hour electricity company Because it adopts time-based electricity pricing, it has the characteristics of short peaks and long off-peaks Therefore, price average TSMC “inferior” electric unit. than the actual industrial electricity price quoted.

Taipower confirmed that apart from water and electricity, TSMC’s operating costs also include other costs such as technical staff.