On November 12, according to an announcement on TSMC's official website, the company has approved an allocation of approximately $15.48 billion. This funding will be primarily used for the construction of new wafer fabs, installation of facility systems, and deployment of advanced node capacity.
Additionally, TSMC's board has approved issuing up to 60 billion New Taiwan dollars (approximately $1.85 billion) in unsecured corporate bonds across multiple markets. These funds will be used to finance TSMC's capacity expansion and/or pollution control expenses.
Recently, TSMC released its third-quarter financial results, showing significant growth. TSMC's Q3 revenue reached $23.5 billion, a year-on-year increase of 39% and a sequential increase of 12.8%. Net profit stood at $10.1 billion, up 54.2% year-on-year. The gross margin rose to 57.8%, increasing by 4.6% compared to the previous quarter and 3.5% year-on-year. Operating margin was 47.5%, up 5% sequentially and 5.8% year-on-year. Notably, these figures exceeded market expectations.
From a process technology perspective, TSMC's 3nm process showed significant growth, with overall revenue increasing by 12.8% sequentially, driven by an increased contribution from the 3nm node. According to the financial report, the 3nm process accounted for 20% of TSMC's total wafer revenue, a 5% increase from the second quarter. Meanwhile, the 5nm process remains the largest revenue contributor, accounting for 32% of TSMC's wafer manufacturing revenue. The 7nm process contributed 17% of Q3 revenue, remaining stable compared to previous quarters. Overall, advanced processes (7nm and below) accounted for 69% of TSMC's total wafer manufacturing revenue, solidifying their core position. In contrast, mature nodes are seeing a decreasing share in TSMC's overall revenue.
In response to strong AI-related demand, TSMC expects capital expenditures for 2024 to slightly exceed $30 billion, with 2025 capital expenditures expected to surpass this year's level.
Regarding fab construction progress, TSMC's first fab in Arizona, USA, is expected to start mass production of 4nm process technology in early 2025, with a monthly capacity of 20,000 to 30,000 wafers. This fab represents TSMC's first advanced process production facility outside Taiwan. In September, the first fab conducted its initial trial production, producing the first batch of N4 4nm process wafers, which showed defect rates comparable to those produced in Taiwan. Industry reports indicate that the completion ceremony for TSMC's Arizona facility will be held in early December.
The second fab in Arizona will use a 3nm process and is planned to have a monthly capacity of 25,000 wafers, with the combined capacity of the first and second fabs expected to reach 60,000 wafers per month by 2028. The third fab is planned to adopt a 2nm or more advanced process, with completion expected before 2030. Industry sources reveal that the main hall of TSMC's first Arizona plant already displays a model of all six planned fabs for the site, indicating that preparations are underway for expansion beyond the third fab, including fourth to sixth fabs.
