A emblem of Taiwan Semiconductor Manufacturing Firm (TSMC) is seen throughout the TSMC international RnD Middle opening ceremony in Hsinchu on July 28, 2023. (Picture by Amber Wang / AFP)
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Taiwan Semiconductor Manufacturing Firm‘s fourth-quarter income and revenue beat expectations, as demand for superior chips utilized in synthetic intelligence purposes continued to surge.
Listed below are TSMC’s fourth-quarter outcomes versus LSEG consensus estimates:
- Web income: 868.46 billion New Taiwan {dollars} ($26.36 billion), vs. NT$850.08 billion anticipated
- Web earnings: NT$374.68 billion, vs. NT$366.61 billion anticipated
TSMC revenue rose 57% from a yr earlier to a file excessive, whereas income jumped 38.8%. The agency had forecast fourth-quarter income between $26.1 billion and $26.9 billion.
Because the world’s largest contract chip producer TSMC produces superior processors for shoppers comparable to Nvidia and Apple and has benefited from the megatrend in favor of AI.
TSMC’s high-performance computing division, which encompasses synthetic intelligence and 5G purposes, drove gross sales within the fourth quarter, contributing 53% of income. That HPC income was up 19% from the earlier quarter.
“The surging demand for AI chips has exceeded expectations in This fall,” Brady Wang, affiliate director at Counterpoint Analysis advised CNBC, including that income was additionally bolstered by demand for the superior chips in Apple’s newest iPhone 16 mannequin.
The Taiwan-based firm first launched its December income final week, bringing its annual whole to NT$ 2.9 trillion — a record-breaking yr in gross sales for the reason that firm went public in 1994.
“We noticed strong AI associated demand from our clients all through 2024,” Wendell Huang, chief monetary officer and vp at TSMC, mentioned in an earnings name on Thursday, including that income from AI accelerator merchandise accounted for “near a mid-teens proportion” of whole income in 2024.
“Even after greater than tripling in 2024, we forecast our income from AI accelerators to double in 2025 as a robust surge in AI-related demand continues as a key enabler of AI purposes,” Huang added.
Nonetheless, TSMC could face some headwinds in 2025 from U.S. restrictions on superior semiconductor shipments to China and uncertainty surrounding the commerce coverage of President-elect Donald Trump.
TSMC Chairman and CEO C.C. Wei mentioned the corporate is not going to attend Trump’s inauguration as its philosophy is to maintain a low profile, Reuters reported.
Trump, who will assume workplace subsequent week, has threatened to impose broad tariffs on imports and has beforehand accused Taiwan of “stealing” the U.S. chip enterprise. .
Nonetheless, Counterpoint’s Wang forecasts 2025 to be one other robust yr for TSMC, with vital income progress fueled by robust and increasing demand for AI purposes, each in variety and quantity.
Taiwan-listed shares of TSMC gained 81% in 2024 and have been buying and selling 3.75% increased on Thursday.
Shares of European semiconductor corporations buying and selling on the Euronext Amsterdam Inventory Change rose Thursday, with ASML up 3.5%, ASM Worldwide gaining 3.75% and Besi rising 5.1%.
