Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) Q2 2024 Earnings Conference Call July 18, 2024 2:00 AM ET
Company Participants
Jeff Su - Director, IR
Wendell Huang - SVP, Finance & CFO
C. C. Wei - Vice Chairman & CEO
Conference Call Participants
Gokul Hariharan - JPMorgan Chase & Co.
Charlie Chan - Morgan Stanley
Bruce Lu - Goldman Sachs Group
Brett Simpson - Arete Research Services
Charles Shi - Needham
Laura Chen - Citigroup
Sunny Lin - UBS
Arthur Lai - Macquarie
Brad Lin - Bank of America Merrill Lynch
Jeff Su
Good afternoon, everyone, and welcome to TSMC's Second Quarter 2024 Earnings Conference and Conference Call. This is Jeff Su, TSMC's Director of Investor Relations and your host for today.
Today's event is being webcast live through TSMC'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 Senior Vice President and CFO, Mr. Wendell Huang, will summarize our operations in the second quarter 2024, followed by our guidance for the third quarter 2024. Afterwards, Mr. Huang and TSMC's Chairman and CEO, Dr. C.C. Wei, will jointly provide the Company's key messages. Then, we will open both the floor and the line for the Q&A session.
As usual, I'd like to remind everybody that today's discussions may contain forward-looking statements that are subject to significant risk and uncertainties, which would 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 microphone over to TSMC's CFO, Mr. Wendell Huang, for the summary of operations and the current quarter guidance.
Wendell Huang
Thank you, Jeff. Good afternoon, everyone. Thank you for joining us today. My presentation will start with the financial highlights for the second quarter of 2024. After that, I will provide the guidance for the third quarter 2024.
Second quarter revenue increased 13.6% sequentially in NT, or 10.3% in U.S. dollars, as our business was supported by strong demand for our industry-leading 3 and 5 nanometers technologies, partially offset by the continuous smartphone seasonality. Gross margin increased 10 basis points sequentially to 53.2%, mainly reflecting cost improvement and a more favorable foreign exchange rate, partially offset by the margin dilution from N3 ramp.