Taiwan Semiconductor Manufacturing Co. reported third-quarter 2024 revenue of NT$759.69 billion ($23.5 billion), a 39% year-over-year increase, driven by demand for artificial intelligence chips. The company’s advanced technologies, including 3-nanometer and 5-nanometer processes, accounted for 69% of total wafer revenue.
Yet surging orders expose persistent constraints. TSMC’s CoWoS advanced packaging capacity, essential for AI accelerators, remains in short supply with the company targeting a balance between supply and demand by 2025-2026. The foundry has been racing to expand, projecting CoWoS capacity to reach 75,000 wafers in 2025, doubling 2024 output.
The company’s 2-nanometer process technology is on track with major customers having completed IP designs and started silicon validation. Industry observers expect 2nm chips to generate NT$85 billion ($2.6 billion) in revenue for TSMC in 2025, climbing to NT$369 billion ($11.4 billion) by 2026.
TSMC’s Arizona operations gained traction, with the first fab starting high-volume production on 4nm technology in Q4 2024. However, the company’s 3nm production timeline has been pushed to 2028, reflecting the complexity of replicating Taiwan’s manufacturing ecosystem abroad.
Capital expenditures remain elevated, with TSMC planning to spend $38-42 billion in 2025 to maintain its technological edge.
