TSMC (2330 TW) Q2 Guidance: Revenue 19.6-20.4 (exp. 19.2bln, prev. 15.68bln Y/Y), Gross Margin 51-53% (Q1 53.1%), Operating Margin 40-42% (Q1 42%), Expects higher power costs; H2 business will be stronger than H1

Co. says it is a key enabler of AI applications.
High level of customer interest in N2 (i.e. 2nm), on track for volume production in 2025. Meaningful revenue from N2 to start from Q1-2026. N2 will be a very, very big node.
Smartphone demand seeing a gradual, not steep recovery.
Traditional server demand 'lukewarm'
Mature node demand remains sluggish; will improve in H2. Less exposed to possible overcapacity for mature nodes.
Capex rate of increase is levelling off.

In Q2, sees business supported by 3nm and 5nm chips.
This month's Taiwan earthquake did impact some wafers, expects most of the lost production to be recovered in Q2.

2024