Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Equity Long-Short, Semiconductors

Chinese EV's and the Lagging Edge Price War

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Thematic (Sector/Industry)

China Semiconductors and semiconductor equipment / Thematic (Sector/Industry)

<ul>
<li>TSMC results came in much better than feared. Revenue was slightly weaker than expected and below consensus. This quarter's big story was margins driven primarily by FX changes.</li>
<li>Revenue was slightly below Taiwan Dollar (TWD) expectations, but margins were ahead of consensus. The big driver of this margin beat was FX, as the dollar weakened against the TWD.</li>
<li>The margin beat happened despite the 3nm ramp, a meaningful headwind. As N3 becomes a larger node, the headwind should increase, especially next quarter.</li>
</ul>


TSMC results came in much better than feared. Revenue was slightly weaker than expected and below consensus. This quarter's big story was margins driven primarily by FX changes.
Revenue was slightly below Taiwan Dollar (TWD) expectations, but margins were ahead of consensus. The big driver of this margin beat was FX, as the dollar weakened against the TWD.
The margin beat happened despite the 3nm ramp, a meaningful headwind. As N3 becomes a larger node, the headwind should increase, especially next quarter.


Taiwan Semiconductor (TSMC) - ADR (TSM US)

Weekly Earnings (ASML, LRCX, TSMC, Nanya)