tsmc shatters expectations with 2024 revenue surge
Taipei, Friday, 10 January 2025.
In 2024, tsmc achieved a record-breaking revenue of 2.9 trillion new taiwan dollars, representing a significant 33.9% increase from the previous year. This remarkable growth has surpassed market expectations, underscoring tsmc’s dominant position in the semiconductor industry. The company’s impressive performance is attributed to the soaring demand for semiconductor products, fueled by technological advancements and increasing global reliance on digital solutions. tsmc’s strategic positioning as a key supplier for major tech companies like Apple and NVIDIA has bolstered its market strength. The 2024 revenue figures highlight tsmc’s ability to adapt and thrive in a competitive market, setting a new benchmark in the industry. With continued innovation and production efficiency, tsmc is poised to maintain its trajectory of growth and influence in the global technology landscape.
Record-breaking fourth quarter performance
TSMC’s fourth quarter revenue reached 868.4 billion New Taiwan dollars (equivalent to 263.6 billion USD) [1][3], exceeding analyst expectations of 853.6 billion New Taiwan dollars [2]. The December 2024 revenue alone showed a remarkable 57.8% year-over-year increase [4], with monthly revenue reaching 278.2 billion New Taiwan dollars [1][4]. This performance aligns with TSMC’s earlier guidance of fourth-quarter revenue between 261-269 billion USD [1].
AI demand drives growth
The company’s exceptional growth is largely attributed to increased demand for artificial intelligence chips. TSMC manufactures chips for industry leaders including NVIDIA, Broadcom, AMD, Amazon, and Google [4]. These companies utilize TSMC’s advanced packaging technology to integrate AI processors with high-bandwidth memory chips [4]. Analysts predict that NVIDIA could potentially overtake Apple as TSMC’s largest customer by 2025, potentially contributing up to 20% of revenue [4].
Market leadership and challenges
TSMC dominated the foundry market with a 64% share in Q3 2024 [4], driven by high utilization rates of N5 and N3 nodes. However, the company faces potential challenges as reports suggest the US may expand technology control restrictions to include 16nm processes [5]. This could impact TSMC’s operations, particularly considering that 16nm technology currently accounts for approximately 8% of its revenue [5].