tsmc reports robust growth amid advanced tech demand
Hsinchu, Wednesday, 29 January 2025.
Taiwan Semiconductor Manufacturing Co. (TSMC) demonstrated remarkable growth in its recent quarterly earnings call held on January 28, 2025. The company attributed its Q4 2024 revenue increase of 14.3% to the soaring demand for 3-nanometer and 5-nanometer technologies. Notably, advanced technologies accounted for 74% of the wafer revenue, up from 58% in the previous year. The high-performance computing (HPC) segment stood out with a staggering year-over-year growth of 58%, contributing 53% to the quarter’s revenue. TSMC’s full-year revenue hit $90 billion, marking a 30% increase. The company’s strategic global expansions include the Arizona fab’s expected production by Q4 2024 and planned expansions in Japan and Europe. Despite potential challenges, including U.S. export restrictions and anticipated margin dilution due to costs overseas, TSMC’s guidance and investments in AI and semiconductor technologies show a positive outlook for upcoming years.
Advanced technology drives record performance
TSMC’s fourth quarter results showcase exceptional growth in advanced technology sectors. The company’s revenue surged by 14.3% in Q4 2024 [1], driven by robust demand for 3-nanometer and 5-nanometer technologies. Advanced technologies now represent 74% of wafer revenue, a significant increase from 58% in 2023 [1]. The high-performance computing segment emerged as a key revenue driver, growing 58% year-over-year and contributing 53% of Q4 revenue [1].
Global expansion and market dominance
With control over approximately 56% of the global foundry market [5], TSMC continues to strengthen its position through strategic expansion. The company’s Arizona facility is scheduled to begin production in Q4 2024, while additional expansions are planned for Japan and Europe [1]. This global presence comes amid rising demand for semiconductor capacity, with both advanced and mature process nodes experiencing shortages expected to extend into 2026 [5].
Financial outlook and AI investments
TSMC projects Q1 2025 revenue between USD 25 billion and USD 25.8 billion [1], demonstrating continued growth despite challenges. AI-related demand contributed to mid-teens percentage of 2024 revenue and is expected to double in 2025 [1]. However, the company faces some headwinds, including a projected 2-3% annual margin dilution over the next five years due to overseas fab costs [1].