TSMC Q2 2020 Revenue Grows by 34%: 7nm and HPC Primary Drivers

TSMC reported has reported its Q2 2020 revenue, and while the quarter-over-quarter growth was rather flat, the year-on-year profits grew by a significant 34%. The Taiwanese Foundry reported a net revenue of US$10.38 billion, up from 7.75 billion in Q2 2019. The gross margin was reported at 53% and the operating margin at 42.2%. Meanwhile, the net profit margin was a stable 38.9%, up from 37.7% in Q1 and 27.7% last year (Q2 2019).

Looking at the profits based on the process nodes, then 7nm accounted for a whopping 36% of the total revenue. These include 7nm orders for AMD’s Ryzen and Epyc processors, Huwaei’s Kirin chips as well as processors powering the latest Apple and Qualcomm devices.

14nm and 16nm were the other two primary nodes. The former is primarily leveraged by NVIDIA and HiSilicon while 16nm is for the bulk of last-gen chips.

Moving on to the revenue by platform, HPC was the sole segment to show position growth by 12%. All the rest, including the smartphone market, Automotive and IoT fell by 4-13%.

Outlook for Q3 2020 Revised: +10% Higher than Q2

TSMC also revised the revenue outlook for the coming quarter, with an expected profit of US$11.2 to $11.5 billion. That’s a growth of around 7-10% compared to Q2 and around ~20% YoY. The gross profit margins are expected to be somewhere between 50 and 52% while the operating margins between 39 to 41%.


Computer hardware enthusiast, PC gamer, and almost an engineer. Former co-founder of Techquila (2017-2019), a fairly successful tech outlet. Been working on Hardware Times since 2019, an outlet dedicated to computer hardware and its applications.
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