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TSMC Posts Record Profit, Projects Strong Growth Amid AI Surge

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Taiwan Semiconductor Manufacturing Co. (TSMC) has reported a record quarterly profit, signaling robust demand for chips, particularly those used in artificial intelligence (AI) processing. The world’s largest contract chipmaker posted a 57% increase in net income, reaching T$374.68 billion ($11.4 billion) for the quarter ending December 31, 2024. This performance matched analyst expectations, with revenue climbing 39% year-on-year.

Looking ahead, TSMC is projecting significant revenue growth in the first quarter of 2025, with a forecast of approximately 37% growth, bringing in between $25 billion and $25.8 billion. For the full year, the company expects a revenue increase between 20% and 30%, driven by strong AI demand.

Despite a thriving business, TSMC faces challenges from U.S. technology restrictions targeting China. The Biden administration’s recent announcement of tighter controls on AI chip exports has raised concerns, although TSMC’s CEO, C.C. Wei, expressed confidence that these restrictions would be manageable. Wei noted that the company is applying for special permits for clients affected by these curbs and is optimistic about securing approval.

TSMC is also expanding its global footprint with ongoing construction of new fabrication plants (fabs) in the U.S., Japan, Germany, and Taiwan. The company expects its capital expenditure for 2025 to reach between $38 billion and $42 billion, a potential increase of 41%.

The AI boom has significantly boosted TSMC’s stock, making it Asia’s most valuable company. Its stock price surged 81% last year, outperforming the broader market, which saw a 28.5% gain. On Thursday, ahead of the earnings call, TSMC’s shares rose by 3.8%.

 

TSMC Reports Record Quarterly Profit, Expects Strong Growth in Early 2025

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Taiwan Semiconductor Manufacturing Co (TSMC) has posted a record-breaking quarterly profit, reporting a 57% increase in net income to T$374.68 billion ($11.4 billion) for the quarter ending Dec. 31. This surge in profit aligns with the company’s bullish outlook for the future, as revenue jumped by 39% compared to the same period last year. TSMC has forecasted continued strong performance, with a revenue growth estimate of about 37% for the first quarter of 2025, projecting earnings between $25-25.8 billion. For the full year, TSMC expects revenue growth to be between 20% and 30%, driven largely by the demand for chips used in artificial intelligence (AI) processing.

While TSMC’s business is thriving, it faces challenges stemming from U.S. government restrictions on AI chip exports to China. The Biden administration recently announced further curbs on these exports, which could affect demand from clients. However, TSMC’s CEO, C.C. Wei, expressed confidence that the company could manage these restrictions, stating that they are currently applying for special permits for affected clients and anticipating approval. He also emphasized the company’s strong communication with both the current and incoming U.S. administrations.

TSMC’s growth is also supported by its ambitious expansion plans, including new fabs in the United States, Japan, Germany, and Taiwan. For 2025, TSMC has set its capital spending target between $38 billion and $42 billion, marking a potential 41% increase. The AI-driven boom has significantly boosted TSMC’s stock price, which surged 81% in 2024, outperforming the broader market’s 28.5% growth.

 

TSMC Maintains U.S. Investment Strategy Following Trump Election Win

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Taiwan Semiconductor Manufacturing Co. (TSMC) confirmed that its U.S. expansion plans remain unchanged despite Donald Trump’s recent election victory. In an emailed statement on Thursday, TSMC assured that its $65 billion investment in new semiconductor plants in Arizona is proceeding as planned, though it did not offer further details.

TSMC, the world’s leading contract chipmaker and a major supplier for companies like Apple and Nvidia, has been expanding its U.S. presence as part of an extensive strategy to bolster global production. Trump’s campaign, which included criticisms of Taiwan for “taking American semiconductor jobs,” does not appear to impact TSMC’s plans. In April, TSMC’s U.S. branch secured a preliminary $6.6 billion subsidy agreement with the U.S. Commerce Department to support its advanced semiconductor manufacturing in Phoenix, Arizona.

The Taiwanese chipmaker’s steady progress aligns with recent moves under the U.S. Chips and Science Act, a significant part of Washington’s efforts to strengthen domestic chip production. Both TSMC and other major players like GlobalFoundries are expected to finalize their funding from the Biden administration soon, as confirmed by sources close to the matter.

In terms of market performance, TSMC’s stock has held strong amidst Trump’s re-election. The company’s American Depositary Receipts (ADRs) closed up by 4.1% on Thursday, fueled by Nvidia’s record stock performance, which lifted the broader semiconductor sector. Nvidia’s shares hit an all-time high, propelling the chip industry’s valuation over $3.6 trillion for the first time in history as demand for AI technologies continues to surge.