Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) stock fell 2.15% (As on October 14, 11:42:46 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 22 has reported 80% rise in the net profit to NT$280.87 billion ($8.81 billion) but also trimmed capital spending by at least 10% for this year. Year-over-year, third quarter revenue increased 47.9% while net income increased 79.7% and diluted EPS increased 79.8%. Compared to second quarter 2022, third quarter results represented a 14.8% increase in revenue and a 18.5% increase in net income. Gross margin for the quarter was 60.4%, operating margin was 50.6%, and net profit margin was 45.8%. In the third quarter, shipments of 5-nanometer accounted for 28% of total wafer revenue; 7-nanometer accounted for 26%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 54% of total wafer revenue.

Based on the company’s current business outlook, management expects the fourth-quarter revenue to be between $19.9 billion and $20.7 billion. For the fourth quarter 2022, the company expects the business to be flattish, as the end market demand weakens, and customers’ ongoing inventory adjustment is balanced by continued ramp-up for the industry-leading 5nm technologies. For the fourth quarter 2022, the company expects Gross profit margin is expected to be between 59.5% and 61.5% and Operating profit margin is expected to be between 49% and 51%.

Meanwhile, the company’s subsidiary, the TSMC Japan 3DIC R&D Center, has completed construction of its clean room in the Tsukuba Center of the National Institute of Advanced Industrial Science and Technology (AIST). The TSMC Japan 3DIC R&D Center, with its brand-new clean room facility, will pursue research into the next generations of three-dimensional silicon stacking and advanced packaging technologies in materials science. These technologies will enable system-level innovations to increase computing performance and integrate more functionality, opening a new path for driving semiconductor technology forward in addition to the industry’s conventional path of shrinking transistor size. TSMC established its Japan 3DIC R&D Center subsidiary in March 2021 and later began construction on a clean room facility in the Tsukuba Center of AIST. With the completion of the clean room, the TSMC Japan 3DIC R&D Center will support research and development of state-of-the-art 3D IC packaging material in collaboration with Japanese partners, domestic research institutes and universities possessing strengths in semiconductor materials and equipment.