Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has reported record revenue for 2024, fueled by the surging demand for artificial intelligence (AI) chips. This marks a significant milestone for the company, which has consistently been at the forefront of advanced semiconductor manufacturing.
In the fourth quarter of 2024, TSMC reported revenue of 868.5 billion New Taiwan Dollars (approximately $26.3 billion), representing a 38.8% increase compared to the same period in 2023. These figures surpassed analyst expectations, which were set at 850.1 billion New Taiwan Dollars, according to Refinitiv.
For the full year, TSMC recorded total revenue of 2.9 trillion New Taiwan Dollars, its highest annual sales since it went public in 1994.
Driving Forces Behind TSMC’s Growth
AI Chips Powering Demand
TSMC has been a critical supplier for global tech giants like Apple and Nvidia, producing advanced semiconductors that power a variety of devices and AI applications. The ongoing AI boom has particularly boosted the company’s business, with increased demand for AI graphics processing units (GPUs) and specialized chips.
Brady Wang, an associate director at Counterpoint Research, highlighted TSMC’s strong position in AI-related manufacturing. “TSMC has benefited significantly from the strong demand for AI,” Wang said. He noted that the company’s capacity utilization for its cutting-edge 3 nanometer and 5 nanometer chip processes has consistently exceeded 100%.
Smartphone Semiconductor Advancements
While AI is a significant driver, TSMC has also maintained its leadership in smartphone semiconductor manufacturing. Advanced chips for devices like Apple’s iPhones continue to generate substantial revenue, underscoring the company’s diversified market presence.
Impact on TSMC’s Stock and the Broader Market
TSMC’s remarkable performance has positively impacted its Taiwan-listed shares, which have risen by 88% over the past 12 months. The robust sales figures and optimistic outlook for AI chip demand provide confidence to investors that the trend will continue into 2025.
The company’s success reflects broader trends in the tech industry, as major players like Nvidia, Apple, and Microsoft increasingly rely on advanced chips to support their products and services.
Foxconn and Microsoft Follow Suit
Foxconn’s Record-Breaking Quarter
Foxconn, another key player in the tech supply chain, also reported its highest-ever fourth-quarter revenue this week. Strong demand for AI servers contributed significantly to Foxconn’s growth, further emphasizing the widespread impact of AI technologies on the semiconductor and hardware industries.
Microsoft’s AI Investments
Tech giant Microsoft announced plans to spend $80 billion in its fiscal year ending June 2025 on the construction of data centers designed to handle AI workloads. This substantial investment underscores the increasing demand for data processing infrastructure to support AI applications and services.
TSMC is widely regarded as the most advanced chip manufacturer globally, thanks to its ability to produce cutting-edge semiconductors. Its 3 nanometer and 5 nanometer processes are industry-leading technologies, enabling the creation of smaller, faster, and more efficient chips.
The company’s ability to meet the high demand for advanced AI chips has solidified its reputation as a critical player in the global technology ecosystem. Companies like Nvidia rely on TSMC’s manufacturing capabilities to produce GPUs optimized for AI tasks, including machine learning and data analytics.
TSMC’s stellar performance in 2024 positions it well for continued growth in 2025. As the AI boom shows no signs of slowing, demand for cutting-edge semiconductors is expected to remain strong.
The company’s record-breaking revenue highlights the growing importance of semiconductors in driving technological innovation. With ongoing advancements in AI, cloud computing, and mobile technology, TSMC is poised to remain a key enabler of future technological breakthroughs.
TSMC’s record revenue in 2024 underscores its critical role in the global semiconductor industry. Bolstered by the AI boom and advancements in smartphone technology, the company has achieved new heights in its financial performance.
As demand for AI chips and related technologies continues to grow, TSMC’s ability to stay at the forefront of semiconductor innovation will be instrumental in shaping the future of technology. With companies like Microsoft and Foxconn making significant AI investments, the semiconductor market is set for another strong year, and TSMC is well-positioned to lead the charge.
