TSMC's Q4 Net Profit Surges 57% to NT$374.7B; Boosts 2025 Capex to $38-42B Amid Strong AI Demand

Jan 16, 2025, 06:14 AM

Taiwan Semiconductor Manufacturing Co. (TSMC) reported record financial results for the fourth quarter of 2024, surpassing analysts' expectations due to strong demand for AI chips. The company's net profit for Q4 2024 rose 57% year-over-year to NT$374.7 billion, exceeding the estimated NT$369.84 billion, with earnings per share of NT$14.45 ($2.24 per American Depositary Receipt). Revenue for the quarter reached NT$868.46 billion, also surpassing forecasts, with a gross margin of 59% and an operating margin of 49%, both above the company's guidance. TSMC attributed the robust performance to rapid AI-driven growth and strong demand for advanced semiconductors, with 3nm and 5nm technologies contributing 26% and 34% of revenue, respectively. Wafer shipments totaled 3.418 million 12-inch equivalent wafers. The company projected first-quarter 2025 revenue between $25 billion and $25.8 billion, exceeding market expectations, and forecasted a gross margin of 57% to 59%. TSMC also announced plans to increase its capital expenditures for 2025 to between $38 billion and $42 billion, up from $29.8 billion in 2024, signaling confidence in continued strong growth in AI chip demand. The company expects AI demand to grow at an average annual rate of 40% over the next five years and projects mid-teens revenue growth in 2025.