TSMC 53% profit margin

[Harlequin]

Intel Buys 2 Million Wafers Per Year for $5.4 Billion (ft. Dylan from SemiAnalysis) - YouTube

from about 6 minutes in, Ian Cutress is discussing the Intel acquisition with Dylan from Semi Analysis, and the conversation turns to TSMC and gross margin, along with AMD margin stacking (and Nvidia).

53% gross margin from TSMC alone.

 

[CAT-THE-FIFTH]

Intel Buys 2 Million Wafers Per Year for $5.4 Billion (ft. Dylan from SemiAnalysis) - YouTube

from about 6 minutes in, Ian Cutress is discussing the Intel acquisition with Dylan from Semi Analysis, and the conversation turns to TSMC and gross margin, along with AMD margin stacking (and Nvidia).

53% gross margin from TSMC alone.

https://www.macrotrends.net/stocks/charts/TSM/taiwan-semiconductor-manufacturing/profit-margins

As I was saying before all these companies are quietly jacking up prices,using the pandemic as an excuse and you can see it in their margins.

Shipping companies are having a great time too:
https://fortune.com/2021/12/03/shipping-container-record-profit-supply-chain-breakdown/

 

[Grim5]

That's normal for the industry

Nvidia makes 60% margin
AMD is about 49% now
Intel is 50 to 55%

And that's weighted average margin right, on an individual level, products have higher margin % on higher end products so on something like a rtx3090 or 6900xt they're likely making like 80% margin

 

[Harlequin]

That's normal for the industry

Nvidia makes 60% margin
AMD is about 49% now
Intel is 50 to 55%

And that's weighted average margin right, on an individual level, products have higher margin % on higher end products so on something like a rtx3090 or 6900xt they're likely making like 80% margin

If you watch the video you`ll find that Intel`s margin has dropped a lot they talk about the why intel has dropped from 60%. Please watch it, its very interesting

 

[KompuKare]

How does gross Vs net margins even work for a company which has so much capital expenditures it can issue more bonds than most countries?

While they are raking it in now, there is a reason there are so few foundry players left. Certainly in "unglamorous" DRAM/NAND there historically were lots of very high losses whenever there was a glut. South Korea was hugely affected by that a few decades ago.

Of course, back then commodity DRAM/NAND was mainly unglamorous because the juicy margins were expected to belong there logic chip makers; forward a few decades and it looks like nobody told Samsung.

GF was a nose around AMD's then their new owners for years.

 

[Grim5]

It's a high capital industry, it's almost impossible for someone new to start up a foundary and get an investment company to give them 10s of billions to build it up

It's a harsh industry where there is no room for slackers and if you are not improving everyday you are left behind

Because of all these entrance issues, you get an industry that operates more like a duopoly and duopolies always make high margin and profits when they are not regulated by a government