The Taiwan Semiconductor Manufacturing Company (TSMC) logo seen at the opening ceremony of the TSMC Global RnD Center in Hsinchu on July 28, 2023 (Photo by Amber Wang/AFP)
Amber Wang | AFP | Getty Images
Taiwan Semiconductor Manufacturing Company’s fourth-quarter sales and profit beat expectations as demand for advanced chips used in artificial intelligence applications continued to surge.
TSMC’s fourth quarter earnings and LSEG consensus forecasts are as follows:
Net revenue: NT$868.46 billion ($26.36 billion), expected NT$850.08 billion vs. net profit: NT$374.68 billion, expected NT$366.61 billion
TSMC’s profit increased 57% year-on-year, a record high, and sales increased 38.8%. The company had expected fourth-quarter sales of $26.1 billion to $26.9 billion.
TSMC, the world’s largest contract chipmaker, produces advanced processors for customers such as Nvidia and Apple, and has benefited from megatrends favoring AI.
TSMC’s high-performance computing division, which includes artificial intelligence and 5G applications, led sales in the fourth quarter, accounting for 53% of sales. HPC revenue increased 19% sequentially.
Brady Wang, associate director at Counterpoint Research, told CNBC that “the surge in demand for AI chips in the fourth quarter exceeded our expectations,” adding that the demand for advanced chips in Apple’s latest model, the iPhone 16, was It added that demand also boosted revenue.
The Taiwan-based company announced its December sales for the first time last week, totaling NT$2.9 trillion for the year. This is the highest annual sales since the company went public in 1994.
TSMC Chief Financial Officer and Vice President Wendell Hwang said in an earnings call Thursday that “we are seeing strong AI-related demand from our customers throughout 2024,” adding that revenue from AI accelerator products will continue to grow. “Accounts for nearly one in ten,” he added. % of total revenue in 2024.”
“Revenues from AI accelerators more than tripled in 2024 and are projected to double in 2025 as AI-related demand continues to surge strongly as a key enabler for AI applications. ” Huang added.
But TSMC could face headwinds in 2025, including U.S. restrictions on advanced semiconductor shipments to China and uncertainty over President-elect Donald Trump’s trade policies.
According to Reuters, TSMC Chairman and CEO CC Wei said the company would not attend President Trump’s inauguration because it maintains a low profile.
President Trump, who takes office next week, has threatened broad tariffs on imports and previously accused Taiwan of “stealing” America’s semiconductor business. .
Still, Counterpoint’s Wang predicts 2025 will deliver significant revenue growth for TSMC, supported by strong and expanding demand for AI applications in both variety and volume.
TSMC’s Taiwan-listed shares rose 81% in 2024 and were trading 3.75% higher on Thursday.
Shares of European semiconductor companies traded on the Euronext Amsterdam stock exchange rose on Thursday. ASML 3.5% increase, ASM International Earned a profit of 3.75%, Beshi 5.1% increase.
