TSMC Sees Strong Q4 2024 Earnings, Achieving 37% Year-over-Year Growth

TSMC’s Stellar Fourth Quarter Performance

In a world where technology is evolving faster than ever, TSMC (TWSE: 2330, NYSE: TSM) has just dropped some impressive numbers that are hard to ignore. For the fourth quarter ending December 31, 2024, the company reported a consolidated revenue of NT$868.46 billion, which translates to about $26.88 billion in US dollars. That’s a whopping 38.8% increase in revenue compared to the same quarter last year! But wait, there’s more—net income soared to NT$374.68 billion, marking a stunning 57.0% increase year-over-year. Talk about a tech titan flexing its muscles!

Quarter-on-Quarter Growth: A Positive Trend

When you compare these figures to the previous quarter, TSMC’s growth story continues to impress. Revenue climbed by 14.3%, while net income saw a rise of 15.2%. These numbers aren’t just good news for TSMC; they signal a robust demand for semiconductor technology. The company’s gross margin stood at an eye-popping 59.0%, and operating margin was at 49.0%. With a net profit margin of 43.1%, it’s clear that TSMC is not just keeping pace but leading the charge in the semiconductor industry.

Advanced Technologies Driving Revenue

So, what’s fueling this remarkable growth? TSMC’s advanced technologies are the real stars of the show. In the fourth quarter, shipments of 3-nanometer chips accounted for 26% of total wafer revenue, while 5-nanometer chips made up 34%. Even the 7-nanometer technology is still holding its ground with a 14% share. Together, these advanced technologies—7-nanometer and beyond—accounted for a staggering 74% of TSMC’s total wafer revenue. It’s no wonder that Wendell Huang, TSMC’s Senior VP and Chief Financial Officer, emphasized the strong demand for their industry-leading 3 nm and 5 nm technologies.

Looking Ahead: What’s Next for TSMC?

As we step into 2025, TSMC is bracing for some fluctuations. Huang noted that the company anticipates some impact from the typical smartphone seasonality, but there’s a silver lining: continued growth in AI-related demand. Isn’t it fascinating how AI is reshaping industries and driving demand for chips?

Management has laid out its expectations for the first quarter of 2025, projecting revenue to be between US$25.0 billion and US$25.8 billion. They also expect a gross profit margin between 57% and 59% and an operating profit margin ranging from 46.5% to 48.5%. That’s a solid forecast for a company that’s already on a roll!

A Bold Future: Capital Investments Ahead

Looking even further down the road, TSMC is planning a capital budget for 2025 that’s estimated to be between US$38 billion and US$42 billion. This kind of investment speaks volumes about their commitment to innovation and expansion in the semiconductor space.

In a nutshell, TSMC is not just riding the wave of technological advancement; they’re actively shaping it. As they continue to push the boundaries of what’s possible, it’s exciting to think about what’s next for this semiconductor powerhouse. What do you think? Are we witnessing the dawn of a new era in tech?

Background Information

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About TSMC:

TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.

  

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