Taiwan Semiconductor Manufacturing Co. reported a 57% surge in fourth-quarter profit, powered by strong demand for its most sophisticated chips used in artificial intelligence processors.
Net income climbed to NT$374.68 billion ($11.6 billion) in the three months ended December, while revenue rose 39% to NT$868.46 billion. The world’s largest contract chipmaker maintained a robust 59% gross margin, reflecting its pricing power in advanced semiconductor manufacturing.
TSMC’s newest 3-nanometer technology contributed 26% of wafer revenue, while 5-nanometer accounted for 34%. The high adoption rate of premium nodes helped the company weather broader industry challenges.
Looking ahead, the chipmaker expects revenue between $25 billion and $25.8 billion in the first quarter, suggesting a potential slowdown. Management cited weakening smartphone demand as a headwind, though continued strength in AI-related orders may provide some offset.
The company plans to spend between $38 billion and $42 billion on capital expenditure in 2025, highlighting its determination to maintain technological leadership despite near-term market uncertainty.
TSMC manufactured nearly 12,000 different products for 522 customers in 2024, underscoring its crucial role in the global semiconductor supply chain.
