TSMC's official financial statements for 2025

TSMC's Q4 Profit Surges 57%, Projects 2025 Growth with US$38-42 Billion Investment Amid AI Demand

Jan 16, 2025, 09:50 AM

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a record-breaking net profit for the fourth quarter of 2024, with a 57% increase year-over-year to NT$374.7 billion (US$11.4 billion), surpassing market expectations. The company's revenue for the quarter rose 38.8% to NT$868.46 billion (US$26.4 billion), also beating forecasts. TSMC's full-year net profit reached NT$1.2 trillion, up 40.5% from the previous year, while annual revenue increased by 33.9% to NT$2.9 trillion. The growth was driven by robust demand for chips used in artificial intelligence (AI) applications, particularly from its 3nm and 5nm technologies. TSMC's CEO, C.C. Wei, highlighted that the company expects a doubling of revenue from AI accelerators in 2025, despite potential impacts from smartphone seasonality. The company anticipates a revenue increase of mid-20% in US dollar terms for 2025, supported by continued AI demand. TSMC plans to invest between US$38 billion and US$42 billion in capital expenditures for 2025, a significant increase aimed at supporting growth in AI and other technology sectors. Despite the positive outlook, TSMC faces challenges from U.S. export restrictions on AI chips to China, though the company believes these issues are manageable and is seeking special permits for affected customers.