CHART: Despite restrictions on AI chip exports, TSMC posted a record-breaking Q4 2024 performance

Emmanuel Oyedeji -
  • TSMC’s Q4 2024 revenue surged 38.8% year-over-year to NT$868.46 billion.
  • Q1 2025 revenue is forecast at $25–$25.8 billion, with 20–30% full-year growth projected.
  • TSMC's stock rose following the earnings announcement.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, posted record-breaking financial results for Q4 2024, driven by soaring demand for its cutting-edge chip technologies.

Revenue reached NT$868.46 billion, a 38.8% year-over-year increase, while net income after tax surged by an impressive 57% to NT$374.68 billion. In U.S. dollar terms, revenue stood at $26.88 billion, reflecting a 37% increase from the previous year and a 14.4% rise from the previous quarter.

TSMC’s performance was underpinned by the growing demand for its 3nm and 5nm process technologies. These advanced chips, crucial for AI servers, high-performance computing, and next-generation smartphones, accounted for the bulk of TSMC’s Q4 wafer sales revenue. Specifically, 3nm chips contributed 26%, and 5nm chips 34%. Together with its 7nm chips, these advanced processes made up 74% of the company’s total wafer sales revenue.

The company expects this momentum to continue, forecasting Q1 2025 revenue between $25 billion and $25.8 billion, representing a strong year-over-year growth. For the full year, TSMC projects a revenue increase of 20% to 30%.

Following the earnings announcement, TSMC’s stock rose over 5% on the NYSE, underscoring investor enthusiasm for its leadership in the AI revolution.

To maintain its dominance, TSMC, a key supplier to tech giants like Apple and Nvidia, is investing aggressively in global expansion, with planned capital expenditures of $38 billion to $42 billion for 2025 — a 41% increase from the previous year. These funds will support new facilities in the United States, Japan, Germany, and Taiwan, aligning with global supply chain diversification efforts and meeting surging AI demand.

Despite its strong results, TSMC faces challenges, including tighter U.S. restrictions on AI chip exports to China and potential trade uncertainties with the incoming U.S. administration. However, the company’s dominant market position and ability to adapt to geopolitical shifts offer a strong buffer against these risks.