TSMC's NOV18 revenue reached NTD98.39bn, the third highest in history

Wafer foundry leader TSMC (2330-TW) announced its NOV18 revenue today on December 10th, reaching NTD98.389bn (-3.1% MoM, +5.6% YoY). The accumulated JAN18-NOV18 revenue was NTD941.643bn (+6.1% YoY). TSMC"s Oct18-Nov18 revenue reached NTD199.939bn. Its 4Q18 revenue is expected to hit the target and its FY18 revenue is expected to break the trillion.

According to TSMC, its 4Q18 revenue is estimated at NTD288-291bn (11%-12% QoQ) and may hit another new high. Based on the estimation, TSMC"s Dec18 revenue is estimated at NTD88-91bn, lowered MoM, reflecting the correction pressure after the inventory ramp-up.

TSMC’s 4Q18 revenue may be catalyzed by the shipment of Apple’s (AAPL-US). However, due to the poor sales of new iPhone, its 4Q18 operating performance may stay at the low end.

TSMC expected that catalyzed by the shipment of A12, the 7nm chip’s may account for 20% of 4Q18 revenue, and account for 10% of the FY18 revenue. In addition to smart phone chips, HPC products and others may start 7nm process production next year as well. Its 7nm process related revenue is expected to double next year.

TSMC lowered its full-year target for the third time. Its FY18 revenue is expected to grow by 6%-7% YoY in USD, lowered than previous estimation of 10% growth, due to crypto-related demand correction.