tsmc reports staggering revenue growth amid geopolitical tensions
Hsinchu, Tuesday, 4 February 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) has announced a groundbreaking surge in revenue for the fourth quarter of 2024. The company reported a record income of 868.46 billion TWD, marking an impressive 38.84% boost from the previous quarter. This achievement highlights TSMC’s ability to maintain its leading role in the global semiconductor market, even amid ongoing geopolitical challenges. The annual revenue for 2024 reached 2.89 trillion TWD, reflecting a 33.89% growth over the year. TSMC’s continued success is reinforced by its strong market presence in advanced manufacturing processes such as 3nm and 2nm, which serve major clients like Apple and Nvidia. Despite potential hurdles like tariff policies from the United States, TSMC’s position remains resilient, backed by substantial R&D investments and expanding production capacities. The company’s achievements emphasize its robust ability to navigate and thrive in a competitive and complex global landscape.
Market dominance in advanced manufacturing
TSMC’s remarkable performance is anchored in its technological superiority, particularly in advanced chip manufacturing. The company commands over 90% market share in the 7nm and below segment [3], with an impressive 80% yield rate for 3nm chips, significantly outperforming competitors like Samsung who achieve around 50% [3][4]. The advanced manufacturing segment generated $21.55 billion in Q4 2024 [3], while High-Performance Computing constituted 53% of total revenue with a 58% year-over-year growth [3].
Strategic investments and future outlook
The company’s strategic focus is evident in its substantial investments. R&D expenditure grew from $3.899 billion in 2020 to $6.281 billion in 2024 [3][4], while capital expenditure reached $29.7 billion in 2024 with plans to increase to $38-42 billion in 2025 [3]. TSMC is preparing to commence mass production of 2nm chips in the second half of 2025 [3], maintaining its technological edge in the industry.
Navigating geopolitical challenges
Morgan Stanley projects that U.S. customers will represent 60-70% of TSMC’s 2025 revenue [2][5]. While potential U.S. tariffs could impact profit margins, TSMC’s management indicates that customers would bear these additional costs [2]. The company’s technological leadership in advanced processes, particularly in 5nm, 3nm, and 2nm technologies, positions it to maintain high market share despite geopolitical pressures [2].