Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) Q2 2023 Earnings Call Transcript

Jeff Su: Yes. So the second part is about close to 50% CAGR for AI – sorry, server with AI processor. How much of that is volume? How much of that is price?

C. C. Wei: We cannot separate out, but let me share with you again, we talk to the customers because we have a major share of all the leading-edge technology node. So we know that we can make our judgment and so we forecast a 50% CAGR. How much of that is on the front end, back end or others? I am not able to share with you about it. But let me assure you that TSMC is going to capture a major portion of the market in terms of semiconductor component.

Jeff Su: Okay, Charles?

Charles Shi: Thank you. Can I ask you a second question?

Jeff Su: Last question.

Charles Shi: Yes, no problem. Last one. May I ask about the CapEx. I think I heard a comment that maybe some window about our dollar amount. CapEx stock is going to level up from here. And I think the management used to point us analysts to look at the 2010 to 2013 period with a high capital tenancy. CapEx actually went up $3 billion, $4 billion per year to 10. And actually, after that, TSMC CapEx did a level off around $10 billion level for roughly 5 years until 2019. By telling us the CapEx is probably going to level off, are you telling us or are you alluding to maybe there will be some steady state CapEx numbers going forward, maybe starting from ’24 or ’25, around NT30 billion-ish [ph] level. That’s just a clarification on that comment to level it up. Thank you.

Jeff Su: Okay. So Charles, second question is on our CapEx. He wants to know capital spending starting to level off. I think Wendell said in the next several years. So not any specific, but what does that mean? Is it going to stay around the 30-some level? Or what does that mean by spending leveling off?

Wendell Huang: Yes. The – Charles, as I mentioned in the past few years, our CapEx increased dramatically from NT10 billion to NT36 billion last year. As we start to harvest those investments, the increase in CapEx will be slower than before. That’s what I mean by leveling off.

Jeff Su: Okay. All right, Charles.

Charles Shi: Okay. Got it.

Jeff Su: Okay. Thank you.

Charles Shi: Yes, thank you.

Jeff Su: Okay. Operator, this concludes our Q&A session. Before we conclude today’s conference, please be advised that the replay of the call will be accessible within 30 minutes from now. The transcript will become available 24 hours from now, both of which you can be find and available through TSMC’s website at www.tsmc.com. So thank you for joining us today. We hope everyone continues to stay well. Have a good rest of the summer, and we hope you will join us again next quarter. Goodbye, and have a good day.