Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, has reported an impressive financial performance for the December quarter, surpassing analyst expectations and showcasing the strong influence of artificial intelligence (AI) on its growth.
Fourth-Quarter Revenue Beats Expectations
TSMC announced fourth-quarter revenue of 868.5 billion New Taiwan dollars ($26.3 billion), a remarkable 38.8% increase year-on-year, according to CNBC calculations. This figure exceeded the Refinitiv consensus estimate of 850.1 billion New Taiwan dollars, highlighting the company’s ability to capitalize on growing demand for advanced semiconductors.
A Record-Breaking Year
For the full year 2024, TSMC’s revenue reached a historic 2.9 trillion New Taiwan dollars, marking its highest annual sales since the company went public in 1994. This milestone underscores TSMC’s pivotal role in the semiconductor industry, particularly as global industries increasingly rely on AI and high-performance computing technologies.
AI Boom Fuels Growth
The surge in revenue can be attributed to the global AI boom, which has driven demand for TSMC’s advanced chips. These chips power critical AI technologies, from large language models to autonomous systems, positioning TSMC at the forefront of technological innovation.
As the semiconductor industry continues to evolve, TSMC’s performance reflects its strategic importance in meeting the growing needs of AI-driven markets, ensuring its dominance in the years ahead.
TSMC’s Advanced Semiconductor Manufacturing Powers AI and Smartphone Demand
Taiwan Semiconductor Manufacturing Co. (TSMC) continues to solidify its position as the world’s leading chipmaker, supplying cutting-edge semiconductors to major global players like Apple and Nvidia. With its ability to manufacture the most advanced 3-nanometer and 5-nanometer chips, TSMC is at the forefront of the AI and smartphone revolution.
AI Demand Boosts TSMC’s Performance
The surging demand for artificial intelligence (AI) chips, particularly Nvidia’s AI GPUs, has significantly boosted TSMC’s performance. Brady Wang, associate director at Counterpoint Research, highlights TSMC’s remarkable “capacity utilization,” consistently exceeding 100% for its advanced chip processes. These cutting-edge chips are crucial for powering AI workloads and next-generation technologies.
TSMC’s role in supplying AI chips positions the company as a critical enabler of the AI boom, with Taiwan-listed shares rising 88% in the past 12 months. This growth underscores the market’s confidence in TSMC’s ability to meet rising demand for AI-driven semiconductors.
Expanding Markets and Future Prospects
TSMC isn’t alone in benefiting from AI growth. Foxconn, which assembles Apple’s iPhones, recently reported record-breaking fourth-quarter revenue driven by robust demand for AI servers. Meanwhile, Microsoft has announced plans to spend $80 billion by June on data centers designed for AI workloads, signaling sustained demand for AI-related infrastructure and chips.
TSMC: A Pillar of Innovation
As TSMC’s advanced semiconductors fuel AI innovations and smartphone advancements, its latest sales figures give investors optimism for continued growth in 2025. With a proven track record of meeting global technological demands, TSMC remains a cornerstone of the semiconductor and AI industries.
