TSMC posts record profit amid hype around AI chips

TSMC records record profits. Source: TSMC

The world's largest contract semiconductor manufacturer, TSMC, has announced record financial results for the fourth quarter of 2024. The company's net profit rose 57 per cent year-on-year to NT$374.68 billion ($11.4 billion).

Here's What's New About It

• Revenue growth: TSMC's fourth-quarter revenue rose 38.8% year-on-year to $26.36 billion, beating analysts' expectations.
• Forecasts for 2025: The company forecasts revenue growth of 37% in the first quarter of 2025, expecting figures in the range of $25-25.8 billion. For the full year 2025, TSMC expects revenue growth of 20-30%.

Context

The main growth driver has been chips used in artificial intelligence technologies. TSMC's customers include giants such as Apple and Nvidia, emphasising the company's strategic importance in the global technology ecosystem.

In addition, TSMC plans to increase capital expenditure by 41 per cent in 2025, taking it to $38-42 billion

Source: TSMC