TSMC's official Q4 2024 earnings report

TSMC's Q3 Profit Soars 54% to NT$325.3B, Beats Forecasts on Strong AI Chip Demand from Apple, Nvidia

Oct 17, 2024, 05:40 AM

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported a 54% year-on-year increase in third-quarter net profit to NT$325.3 billion (approximately US$10.06 billion), surpassing market forecasts of NT$300.2 billion. The surge was driven by strong demand for artificial intelligence (AI) chips from major clients such as Apple and Nvidia. Revenue for the quarter rose to NT$759.7 billion (US$23.5 billion), with robust smartphone and AI-related demand for TSMC's advanced 3nm and 5nm technologies, which contributed 20% and 32% of total revenue, respectively. TSMC's gross margin for the quarter was 57.8%, exceeding its guidance range of 53.5% to 55.5%, while operating margin reached 47.5%, also above guidance. Wafer shipments totaled 3.338 million units, reflecting strong production activity. The company announced capital expenditure of US$6.4 billion for the quarter. TSMC raised its full-year revenue growth forecast to "close to 30%" in US dollar terms, up from the previous estimate of "slightly above mid-20%," indicating strong momentum in the semiconductor industry fueled by AI applications. Looking ahead, TSMC provided an optimistic outlook for the fourth quarter, forecasting revenue between US$26.1 billion and US$26.9 billion, above analysts' expectations of US$24.94 billion. The company expects gross margins of 57% to 59% in the fourth quarter. TSMC plans to slightly increase its capital expenditure for the year to slightly higher than US$30 billion, signaling confidence in ongoing demand. The company highlighted that almost every AI innovator is working with TSMC, emphasizing its central role in the global tech revolution.