TSMC Posts Record Revenue as AI Chip Demand Surges

HSINCHU, Taiwan — Taiwan Semiconductor Manufacturing Company (TSMC) reported record-breaking fourth-quarter earnings on Thursday, driven by surging demand for advanced chips used in artificial intelligence (AI) applications. The world’s largest contract chipmaker saw its revenue rise 38.8% year-over-year, while net income jumped 57%.

The company’s revenue for the December quarter reached $26.1 billion to $26.9 billion, in line with its earlier forecast. TSMC, which produces processors for tech giants like Apple and Nvidia, has capitalized on the growing AI boom. Last week, the company announced December revenue of NT$2.9 trillion ($92 billion), marking its highest annual sales since its 1994 IPO.

“The AI megatrend is a significant driver of our growth,” a TSMC spokesperson said during the earnings call. “Our advanced chip technology positions us at the forefront of this transformation.”

Despite its strong performance, TSMC faces potential challenges in 2025, including U.S. export controls on China and uncertainty surrounding trade policies under President-elect Donald Trump. Trump has previously accused Taiwan of “stealing” U.S. chip business and threatened to impose broad tariffs.

Taiwan-listed shares of TSMC surged 81% in 2024 and were trading 3.75% higher on Thursday following the earnings announcement. Analysts remain optimistic about the company’s outlook, citing its leadership in advanced chip manufacturing and the ongoing AI boom.