Business Standard

Tuesday, January 28, 2025 | 08:03 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

TSMC Q4 profit jumps over 57% to record on strong demand for AI chips

World's largest contract chipmaker, whose customers include Apple and Nvidia, posted a net profit of T$374.68 billion ($11.4 billion) for the quarter ended Dec 31

tsmc

AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock soaring 81 per cent last year (Photo: Reuters)

Reuters TAIPEI

Listen to This Article

Taiwan Semiconductor Manufacturing Co logged record quarterly profit on Thursday and said it expects robust revenue growth in the first three months of the year as demand surges for chips used in artificial intelligence processing. 
While business is booming, TSMC does face headwinds from US government technology restrictions on China with the Biden administration saying this week it would further restrict AI chip and technology exports. 
Though Taiwan and other close US allies will be allowed unlimited access to US AI technology, further curbs could impact demand from clients. 
President-elect Donald Trump's incoming administration, which has threatened broad import tariffs, also brings much uncertainty.
 
TSMC Chief Executive C.C Wei said he believes that US export controls on AI chips for China were a manageable issue for the company. 
Wei said TSMC is currently applying for special permits for clients who might be subject to the curbs, adding he is confident that the premission will be granted. He did not elaborate. 
Asked about TSMC's discussions with the current and next US administrations, he added: "Let me assure you that we have a very frank and open communication with the current government and the future one also". He did not give details. 
The world's largest contract chipmaker, whose customers include Apple and Nvidia, posted a 57 per cent jump in net income to T$374.68 billion ($11.4 billion) for the quarter ended Dec 31, a record high for any quarter and in line with estimates. Revenue climbed 39 per cent from the same period a year earlier. 
It expects similar revenue growth in the current quarter of about 37 per cent to $25-25.8 billion, maintaining its bullish outlook for AI demand. For all of 2025, it expects revenue growth roughly midway between 20 per cent and 30 per cent. 
TSMC, which is building new fabs in the United States, Japan, Germany and Taiwan, said it expects its capital spending for this year to be between $38 billion and $42 billion, an increase of as much as 41 per cent. 
Plans for all its overseas fabs are on track, it said. 
The AI boom has helped drive up the price of shares in TSMC, Asia's most valuable company, with its Taipei-listed stock soaring 81 per cent last year, compared with a 28.5 per cent gain for the broader market. 
The stock closed up 3.8 per cent on Thursday ahead of the earnings call. 
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 16 2025 | 11:37 AM IST

Explore News