Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) has reported a robust financial performance for the fourth quarter of 2024, with consolidated revenue reaching NT$868.46 billion (US$26.88 billion), marking a significant 38.8% y/y increase. Net income surged by 57.0% y/y to NT$374.68 billion, while diluted earnings per share rose to NT$14.45 (US$2.24 per ADR unit). The company's gross margin stood at 59.0%, with operating and net profit margins at 49.0% and 43.1%, respectively. TSMC's advanced technologies, including 3nm and 5nm processes, accounted for 74% of total wafer revenue, underscoring the company's leadership in cutting-edge semiconductor manufacturing.
TSMC's CFO, Wendell Huang, attributed the strong quarterly performance to robust demand for its 3nm and 5nm technologies, with shipments of 3nm wafers alone accounting for 26% of total wafer revenue. Looking forward, TSMC anticipates a slight impact from smartphone seasonality in Q1 2025, but expects continued growth in AI-related demand. The company has set a capital budget of US$38 billion to US$42 billion for 2025, reflecting its commitment to maintaining technological leadership. The market has responded positively to TSMC's results, with the stock price rising 5.08% to $217.30, nearing its 52-week high. Conclusion: TSMC's strong Q4 performance, driven by advanced technology demand, has been well-received by the market, as evidenced by a notable stock price increase.