TSMC or Taiwan Semiconductor Manufacturing Company reported impressive fourth-quarter results. It surpassed all expectations because of the increase in the demand for cutting-edge chips that are used in AI applications.
Net revenue reached 868.46 billion New Taiwan dollars ($26.36 billion) in the fourth quarter, exceeding the anticipated NT$850.08 billion. The next income stood at NT$374.68 billion which surpassed the expected NT$366.61 billion.
The profit of the company surged by 57% year-over-year, hitting an all-time high, while the revenue experienced an increase of 38.8%. TSMC had projected fourth-quarter revenue to fall somewhere between $26.1 billion and $26.9 billion.
TSMC as the leading contract chip manufacturer globally, produces sophisticated processors for major clients such as Nvidia and Apple. It capitalizes on the growing trend towards AI technologies
The High-Performance Computing (HPC) segment which includes AI and 5G applications was a major driver of sales in the fourth quarter. It accounted for 53% of total revenue and this HPC revenue increased by 19% compared to the previous quarter.
Brady Wang, the associate director at Counterpoint Research in an interview with CNBC stated, “The explosive demand for AI chips has surpassed our expectations in Q4.” He noted that the revenue was also supported by the need for advanced chips in Apple’s latest iPhone 16.
The Taiwan-based company released its revenue for December last week bringing its annual total to NT$2.9 trillion. This marked a record year in sales since the company made its debut. C.C. Wei, TSMC Chairman and CEO during an earnings call on Thursday, remarked, “We have seen strong AI-related demand from our customers throughout 2024. Even after more than tripling in 2024, we anticipate our revenue from AI accelerators to double in 2025, driven by a robust surge in AI-related demand that continues to be a crucial enabler of AI applications.”
Business Journalist
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