The Taiwan Semiconductor Manufacturing Company (TSMC) logo seen at the opening ceremony of the TSMC Global RnD Center in Hsinchu on July 28, 2023 (Photo by Amber Wang/AFP)
Amber Wang | AFP | Getty Images
Taiwan Semiconductor Manufacturing Company’s fourth quarter revenue and profit It exceeded expectations as demand for advanced chips used in artificial intelligence applications continued to surge.
TSMC’s fourth quarter earnings and LSEG consensus forecasts are as follows:
- Net revenue: NT$868.46 billion ($26.36 billion), forecast NT$850.08 billion
- Net profit: NT$374.68 billion, expected NT$366.61 billion
TSMC’s profit increased 57% year-on-year, a record high, and sales increased 38.8%. The company had expected fourth-quarter sales of $26.1 billion to $26.9 billion.
TSMC, the world’s largest contract chipmaker, produces advanced processors for customers such as Nvidia and Apple, and has benefited from megatrends favoring AI.
TSMC’s high performance computing Segments including artificial intelligence and 5G applications led sales in the fourth quarter, accounting for 53% of sales. HPC revenue increased 19% sequentially.
Brady Wang, associate director at Counterpoint Research, told CNBC that “the surge in demand for AI chips in the fourth quarter exceeded our expectations,” adding that the demand for advanced chips in Apple’s latest model, the iPhone 16, was It added that demand also boosted revenue.
The Taiwan-based company announced its December sales for the first time last week, totaling NT$2.9 trillion for the year. This is the highest annual sales since the company went public in 1994.
TSMC Chairman and CEO CC Wei said in an earnings conference on Thursday that “we have confirmed that AI-related demand from customers will remain strong throughout 2024,” and that revenue from AI accelerator products will increase. It added that it will account for “nearly the mid-teens” of total revenue in 2024. 2024.
“Revenues from AI accelerators more than tripled in 2024 and we expect them to double in 2025 as AI-related demand continues to surge as a key enabler for AI applications. ” Wei added.
However, TSMC could face headwinds in 2025 due to U.S. restrictions on advanced semiconductor shipments to China and uncertainty over President-elect Donald Trump’s trade policies.
According to Reuters, Wei said the company’s philosophy is to maintain a low profile and will not attend President Trump’s inauguration.
President Trump, who takes office next week, has threatened broad tariffs on imports and previously accused Taiwan of “stealing” America’s semiconductor business.
Still, Counterpoint’s Wang predicts 2025 will deliver significant revenue growth for TSMC, supported by strong and expanding demand for AI applications in both variety and volume.
TSMC’s Taiwan-listed shares rose 81% in 2024 and were trading 3.75% higher on Thursday.
Shares of European semiconductor companies traded on the Euronext Amsterdam stock exchange rose on Thursday. ASML 3.5% increase, ASM International Earned a profit of 3.75%, Beshi 5.1% increase.
