Prime Highlights:
TSMC posts record revenue of 2.9 trillion New Taiwan Dollars in 2024.
Strong fourth-quarter performance driven by AI chip demand.
Key Background:
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, has reported a record-breaking revenue for the year 2024, totaling 2.9 trillion New Taiwan Dollars. This marks the highest annual sales since the company went public in 1994, driven largely by the sustained demand for advanced semiconductors, particularly those used in artificial intelligence (AI) applications.
In its fourth-quarter report, TSMC posted revenue of 868.5 billion New Taiwan Dollars ($26.3 billion), an impressive 38.8% increase from the same period the previous year. This result exceeded analyst expectations, which had forecasted revenue of 850.1 billion New Taiwan Dollars. The surge in revenue is attributed to the continued boom in AI, with high demand for graphics processing units (GPUs) and other AI-related chips.
The company’s prominence as a leading chipmaker has been bolstered by its ability to manufacture cutting-edge semiconductors, which are in high demand across industries, from smartphones to AI applications. TSMC counts major companies such as Apple and Nvidia among its clients, contributing significantly to its growth. Notably, demand for TSMC’s 3-nanometer and 5-nanometer chips has remained robust, with production capacity for these advanced semiconductors operating at full capacity.
Experts, such as Brady Wang from Counterpoint Research, attribute much of TSMC’s success to the rising need for AI-related chips, particularly those used in AI workloads. The strong performance has also been reflected in TSMC’s stock, which has risen 88% over the past year. As TSMC’s sales numbers for 2024 suggest, the semiconductor industry, particularly in the realm of AI, is poised for continued growth into 2025, signaling a bright outlook for both TSMC and its major partners.