Taiwan Semiconductor Manufacturing
Q2 2022 Earnings Call
Jul 14, 2022, 2:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Jeff Su
[Foreign language] Good afternoon, everyone, and welcome to TSMC's second quarter 2022 earnings conference call. This is Jeff Su, TSMC's director of investor relations and your host for today.To prevent the spread of COVID-19, 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. [Operator instructions] 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 second quarter 2022, followed by our guidance for the third quarter 2022. Afterwards, Mr. Huang and TSMC's CEO, Dr. C.C.
Wei, will jointly provide the company's key messages. Then TSMC's chairman, Dr. Mark Liu, will host the Q&A session, where all three executives will entertain your questions. 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 and 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 on 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 second quarter 2022. After that, I will provide the guidance for the third quarter.
Second-quarter revenue increased 8.8% sequentially in NT or 3.4% in U.S. dollars, as our second-quarter business was supported by strong HPC, IoT, and automotive-related demand. Second-quarter gross margin increased 3.5 percentage points sequentially to 59.1%, slightly ahead of our guidance, as we enjoyed a more favorable foreign exchange rate, cost improvement, and value selling. Likewise, operating margin increased 3.5 percentage points sequentially to 49.1%, in line with our gross margin increase.
Overall, our second-quarter EPS was NT 9.14 and ROE was 39.4%. Now let's move on to revenue by technology. Five-nanometer process technology contributed 21% of wafer revenue in the second quarter while 7-nanometer accounted for 30%. Advanced technologies, which are defined as 7-nanometer and below, accounted for 51% of wafer revenue.