Taiwan Semiconductor Manufacturing
Q3 2022 Earnings Call
Oct 13, 2022, 2:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Jeff Su
Good afternoon, everyone, and welcome to TSMC's third quarter 2022 earnings conference call. This is Jeff Su, TSMC's director of investor Relations and your host for today. TSMC is hosting our earnings conference call via live audio webcast through the company's website at www.tsmc.com, where you can also download the earnings release materials. If you are joining us through the conference call, your dial-in lines are in listen-only mode.
The format for today's event will be as follows. First, TSMC's vice president and CFO, Mr. Wendell Huang, will summarize our operations in the third quarter 2022, followed by our guidance for the fourth quarter 2022. Afterwards, Mr.
Huang and TSMC's CEO, Dr. C.C. Wei, will jointly provide the company's key messages. Then we will open the line for Q&A.
As usual, I would like to remind everybody that today's discussions may contain forward-looking statements that are subject to significant risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor notice that appears in our press release. And now I would like to turn the call over to TSMC's CFO, Mr. Wendell Huang, for the summary of operations and the current quarter guidance.
Wendell Huang -- Vice President and Chief Financial Officer
Thank you, Jeff. Good afternoon, everyone. And thank you for joining us today. My presentation will start with financial highlights for the third quarter 2022.
After that, I will provide the guidance for the fourth quarter. The third quarter revenue increased 14.8% sequentially in NT dollar, or 11.4% in US dollars, as our third quarter business was supported by strong demand for our industry leading 5-nanometer technology. Third quarter gross margin increased 1.3 percentage points sequentially to 60.4%. Slightly ahead of our guidance, as we enjoyed a more favorable foreign exchange rate and cost improvement efforts.
Total operating expenses accounted for 9.8% of net revenue as compared to 10% in the previous quarter. Operating margin increased 1.5 percentage points sequentially to 50.6%, mainly due to better operating leverage. Overall, our third quarter EPS was TWD 10.83, and ROE was 42.9%. Now, let's move on to revenue by technology.