Categories: Business

TSMC’s fourth-quarter profit beats expectations thanks to strong demand for AI chips

A logo of Taiwan Semiconductor Manufacturing Company (TSMC) is seen during 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 exceeded expectations, as demand for advanced chips used in artificial intelligence applications continued to rise.

Here are TSMC’s fourth quarter results compared to LSEG consensus estimates:

  • Net income: NT$868.46 billion ($26.36 billion), compared to NT$850.08 billion expected
  • Net profit: NT$374.68 billion, compared to NT$366.61 billion expected

TSMC’s revenue in the December quarter increased 38.8% year-on-year, while net profit increased 57%.

The company forecast fourth-quarter revenue of between $26.1 billion and $26.9 billion.

TSMC, the world’s largest contract chipmaker, produces advanced processors for customers including Nvidia and Apple and has benefited from the AI ​​megatrend.

The company released its December revenue last week, bringing its annual total to NT$2.9 trillion – a record year for sales since its 1994 IPO.

In 2025, the company will face challenges from U.S. controls on China’s exports and uncertainty surrounding the trade policies of President-elect Donald Trump, who has threatened to impose broad tariffs and also accused Taiwan of “stealing” the US chip industry.

Taiwan-listed shares of TSMC have gained 81% in 2024 and were trading up 3.75% on Thursday.

remon Buul

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