TSMC's official financial report for Q1 2025

TSMC's Q4 Profit Surges 57% to Record High on AI Chip Demand, Faces U.S. Plant Challenges

Jan 16, 2025, 05:53 AM

Taiwan Semiconductor Manufacturing Company (TSMC) reported a record net profit of NT$374.68 billion ($11.59 billion) for the fourth quarter of 2024, marking a 57% increase from the previous year. The surge in profits was driven by robust demand for AI chips. The company's revenue for the quarter reached NT$868.46 billion ($26.88 billion), surpassing market expectations. TSMC's gross margin stood at 59%, exceeding the estimated 58.5%, while its operating margin was 49%. The company also reported earnings per share (EPS) of NT$14.45 (US$2.24 per ADR unit) for the quarter, with full-year EPS reaching NT$45.25. Capital expenditure (CAPEX) for the quarter was NT$29.76 billion, and wafer shipments totaled 3.418 million. Looking ahead, TSMC provided guidance for the first quarter of 2025, forecasting revenue between $25 billion and $25.8 billion, with a gross margin expected to be between 57% and 59%. The company anticipates CAPEX for 2025 to range between $38 billion and $42 billion, with an operating margin projected between 46.5% and 48.5%. Despite the strong performance, TSMC faces challenges in 2025, including potential impacts on margins from its new U.S. plant and uncertainties related to U.S. export controls on China.