Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip manufacturer, announced a remarkable performance for its December quarter. With a 38.8% increase in revenue from the previous year, reaching NT$868.46 billion, TSMC has exceeded market expectations. The net income for the same period surged by 57.0% to NT$374.68 billion, further surpassing analyst predictions. This stellar performance is largely attributed to the increasing demand for advanced chips used in artificial intelligence (AI) applications, a trend that continues to bolster TSMC's growth.
The company's Taiwan-listed shares have reflected this robust performance, experiencing an impressive 81% gain in 2024. On Thursday, these shares were trading 3.75% higher, showcasing investor confidence in TSMC's market position and future prospects. TSMC has solidified its stature by producing advanced processors for tech giants such as Nvidia and Apple, riding the wave of a megatrend favoring AI technology.
TSMC's annual revenue for 2024 reached an unprecedented NT$2.9 trillion, marking the highest revenue since the company went public in 1994. The record-breaking figure underscores TSMC's pivotal role in the semiconductor industry and its ability to capitalize on emerging technological trends. During the fourth quarter, the company's revenue projections ranged between $26.1 billion and $26.9 billion, a forecast that was comfortably met.
However, while TSMC basks in its recent achievements, it also faces potential challenges on the horizon. In 2025, the company anticipates headwinds from U.S. export controls on China, which could impact its operations and market dynamics. Despite these looming obstacles, TSMC's current financial health and strategic positioning provide a solid foundation for navigating future uncertainties.