TSMC profits from Huada AI orders, expected to surpass the combined profits of South Korea's top ten companies by 2023

TSMC's cash dividend for the third quarter of 2023 is about 3.5 NTD, which went ex-dividend today, once again demonstrating the "instant fill dividend" drama. Benefiting from AI orders, Nvidia has become its second largest customer. TSMC's operating profit in 2023 has surpassed the sum of the top ten companies in South Korea by market value, propelling it to become the thirteenth largest asset in the global market value ranking.

TSMC's Operating Profit in 2023 Surpasses the Combined Total of Top Ten South Korean Companies

According to a report by BusinessKorea, financial information provider FnGuide's statistics as of 3/17 show that the operating profit of the top ten South Korean companies last year amounted to only 35.7 trillion Korean won, equivalent to 26.8 billion US dollars, a sharp 54.9% decrease from 79.22 trillion Korean won in 2022.

On the other hand, Taiwan's semiconductor giant TSMC is expected to achieve an operating profit of 921.5 billion New Taiwan dollars in 2023, approximately 30 billion US dollars, surpassing the combined total of ten South Korean companies and even exceeding the market value of the United States' Tesla, making it the thirteenth largest asset globally.

"Taiwan's TSMC Surpasses Tesla in Market Value"

Nvidia Becomes TSMC's Second Largest Customer Thanks to AI Orders

In 2023, TSMC has surpassed Intel and Samsung Electronics to become the world's highest revenue-generating semiconductor company. According to an analysis report by Wealth, in 2023, including TSMC, all companies were affected by high inventory levels of smartphones and laptops, sluggish overall economic demand, geopolitical turmoil, and other major environmental factors. However, TSMC operates on a pure wafer foundry model, with a wide variety of products manufactured by its customers, surpassing Samsung and Intel in diversity.

Especially with the rise of AI opportunities in recent years, the demand for high-speed computing and graphics chips GPUs has been strong. These high-end chip manufacturing processes are inseparable from TSMC's advanced processes and advanced CoWoS packaging. Even Nvidia relies heavily on TSMC. According to a report by MoneyDJ, Nvidia has become TSMC's second largest customer, second only to Apple.

With the AI trend and the completion of semiconductor destocking, TSMC's stock price has been on the rise since the beginning of the year, reaching close to the 800 New Taiwan dollar mark, closing at 764 New Taiwan dollars today after the ex-dividend. However, with TSMC's ADR listed in the U.S. closing at 136.98 US dollars last Friday, the price translates to 868 New Taiwan dollars in the Taiwan stock market.