Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported stellar fourth-quarter results for 2024. The company’s revenue and profit outpaced analyst predictions, fueled by surging demand for AI chips. TSMC’s remarkable performance underscores its pivotal role in the AI-driven semiconductor market.
Key Highlights
- Revenue: NT$868.46 billion ($26.36 billion), a 38.8% YoY increase.
- Exceeded expectations of NT$850.08 billion.
- Net Profit: NT$374.68 billion, a 57% YoY increase.
- Surpassed forecasts of NT$366.61 billion.
- Annual Revenue (2024): NT$2.9 trillion, a 33.9% increase YoY.
Financial Performance
| Metric | Q4 2024 Actual | LSEG Consensus Estimate | YoY Growth |
|---|---|---|---|
| Revenue | NT$868.46 billion | NT$850.08 billion | 38.8% |
| Net Income | NT$374.68 billion | NT$366.61 billion | 57.0% |
| December Revenue (2024) | NT$278.16 billion | Not Applicable | 57.8% |
| Annual Revenue (2024 Total) | NT$2.894 trillion | Not Applicable | 33.9% |
Factors Driving Growth
AI Boom
- Increased demand for AI chips has been pivotal to TSMC’s growth, with major clients like Nvidia and Apple driving orders.
- Advanced processors used in AI applications are a core strength of TSMC.
Record-Breaking December
- December 2024 Revenue: NT$278.16 billion
- A 57.8% increase compared to December 2023.
- Achieved a 0.8% increase from November 2024.
Diversified Client Portfolio
- Long-standing partnerships with global tech giants ensure consistent demand.
Challenges Ahead in 2025
U.S. Export Controls
- Restrictions on semiconductor exports to China may impact revenue.
- The geopolitical landscape, including evolving trade policies under President-elect Donald Trump, adds uncertainty.
Competitive Landscape
- As competition in the semiconductor industry intensifies, TSMC faces pressure to maintain its technological edge.
Market Reaction
- TSMC Shares: Rose by 3.75% on Thursday.
- Gained 81% in 2024, reflecting strong investor confidence.
FAQs
Q1: What is TSMC’s primary revenue driver?
TSMC generates most of its revenue from manufacturing advanced semiconductors used in AI applications, smartphones, and other cutting-edge technologies.
Q2: How did TSMC perform in December 2024?
TSMC posted revenue of NT$278.16 billion in December, marking a 57.8% YoY increase and a 0.8% rise from November 2024.
Q3: What challenges does TSMC face in 2025?
Potential headwinds include U.S. export controls on China and uncertainties surrounding global trade policies.
Q4: How much revenue did TSMC generate in 2024?
TSMC recorded annual revenue of NT$2.894 trillion, setting a new record with a 33.9% YoY increase.
Closing Thoughts
TSMC’s exceptional fourth-quarter performance highlights its strategic importance in the semiconductor industry, particularly in the AI sector. Despite potential challenges in 2025, the company’s technological leadership and strong client base position it for sustained growth.
For further details, refer to TSMC’s official December 2024 Revenue Report
