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Taiwan Semiconductor Manufacturing Company (TSMC), listed on TWSE as 2330 and NYSE as TSM, has announced its financial results for June 2024. The consolidated net revenue for the month reached approximately NT$207.87 billion. This figure represents a decrease of 9.5 percent from May 2024 but marks a substantial increase of 32.9 percent compared to June 2023.
Robust Half-Year Performance
For the first half of 2024, TSMC reported total revenue of NT$1,266.15 billion. This reflects a strong growth trajectory with a 28.0 percent increase compared to the same period in 2023.
Consistent Financial Excellence
TSMC stands out as the only foundry consistently delivering exceptional financial results in the semiconductor industry. Since its listing in 1994, the company has achieved a remarkable 17.7 percent compound annual growth rate (CAGR) in revenue and 17.2 percent CAGR in earnings.
Strategic Objectives and Financial Strength
TSMC's strategic financial objectives from 2021 to 2026 underline its ambitious yet disciplined approach:
- Targeting a revenue CAGR between 15% to 20% in U.S. dollar terms.
- Maintaining a gross margin of 53% or higher.
- Ensuring a return on equity (ROE) above 25%.
The company boasts a fortress balance sheet, holding the semiconductor industry's highest credit ratings from S&P (AA-) and Moody's (Aa3). Notably, TSMC has financed its growth entirely through internally generated funds, demonstrating a high level of financial discipline.
Approach to Growth and Stability
TSMC remains highly disciplined in its approach to mergers and acquisitions, focusing on strategic alignment and sustainable growth opportunities within the semiconductor market. This approach underscores its commitment to maintaining financial stability and capitalizing on industry-leading innovations.
