TSMC Q4 Profit Surges 57% on Advanced Chip Demand

Taipei, Taiwan—Taiwan Semiconductor Manufacturing Co (2330).TW) reported a 57.0% jump in fourth-quarter profit, driven by strong demand for advanced chips.

The world's largest contract chipmaker posted a net profit of NT$374.68 billion ($11.6 billion) for the quarter ended December, up from NT$238.71 billion a year earlier. Revenue rose 38.8% to NT$868.46 billion.

Gross margin expanded to 59.0% from 53.0% a year ago, while operating margin rose to 49.0% from 41.6%.

The company's 3-nanometer technology accounted for 26% of total wafer revenue, while 5-nanometer and 7-nanometer processes contributed 34% and 14%, respectively. 

Advanced technologies, defined as 7-nanometer and below, accounted for 74% of wafer revenue.

High-performance computing represented 53% of TSMC's revenue, while smartphone chips accounted for 35%.

North American customers generated 75% of total revenue, while China contributed 9%, Asia Pacific 9%, Japan 4%, and EMEA 3%.

For the full year 2024, TSMC reported revenue of NT$2,894.31 billion ($90.08 billion), a 33.9% increase from 2023, with capital expenditure of $29.76 billion.

($1 = NT$32.30)