TSMC Reports Record Q4 2024 Earnings with 37% YoY Growth

[AleksandarK]

TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$868.46 billion, net income of NT$374.68 billion, and diluted earnings per share of NT$14.45 (US$2.24 per ADR unit) for the fourth quarter ended December 31, 2024. Year-over-year, fourth quarter revenue increased 38.8% while net income and diluted EPS both increased 57.0%. Compared to third quarter 2024, fourth quarter results represented a 14.3% increase in revenue and a 15.2% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, fourth quarter revenue was $26.88 billion, which increased 37.0% year-over-year and increased 14.4% from the previous quarter. Gross margin for the quarter was 59.0%, operating margin was 49.0%, and net profit margin was 43.1%. In the fourth quarter, shipments of 3-nanometer accounted for 26% of total wafer revenue; 5-nanometer accounted for 34%; 7-nanometer accounted for 14%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue.




"Our business in the fourth quarter was supported by strong demand for our industry-leading 3 nm and 5 nm technologies," said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. "Moving into first quarter 2025, we expect our business to be impacted by smartphone seasonality, partially offset by continued growth in AI-related demand."

Based on the Company's current business outlook, management expects the overall performance for first quarter 2025 to be as follows:

• Revenue is expected to be between US$25.0 billion and US$25.8 billion;
• And, based on the exchange rate assumption of 1 US dollar to 32.8 NT dollars,
• Gross profit margin is expected to be between 57% and 59%;
• Operating profit margin is expected to be between 46.5% and 48.5%.
• The management further expects the 2025 capital budget to be between US$38 billion and US$42 billion.

View at TechPowerUp Main Site

 

[Quicks]

Probably thanks to Nvidia and AI. When you take that away? Apparently Nvidia Blackwell AI chips is not compatible with many servers layouts, overheating due to cooling design.

Read somewhere many big players are delaying procurement of these AI servers because of issues. Some even requested the older models due to this.

Nvidia & TSMC must watch out for 2025.

 

[TheLostSwede]

Probably thanks to Nvidia and AI. When you take that away? Apparently Nvidia Blackwell AI chips is not compatible with many servers layouts, overheating due to cooling design.

Read somewhere many big players are delaying procurement of these AI servers because of issues. Some even requested the older models due to this.

Nvidia & TSMC must watch out for 2025.

TSMC doesn't have to watch out, they have infinite business, as there's no-one else that can pick up their business and do what they're doing.
Apple is their #1 customer, not Nvidia.
Besides Nvidia, TSMC also manufacturers for AMD, Broadcom, Qualcomm, MediaTek and so forth, so it's hardly like they're going to run out of things to produce any time soon.
That said, they might have to adjust the pricing for some of their nodes if demand from Nvidia and the "ai" companies goes down, but they will never run out of things to produce, as demand is much higher than what they can supply.

This is from June last year.

 

[Daven]

TSMC doesn't have to watch out, they have infinite business, as there's no-one else that can pick up their business and do what they're doing.
Apple is their #1 customer, not Nvidia.
Besides Nvidia, TSMC also manufacturers for AMD, Broadcom, Qualcomm, MediaTek and so forth, so it's hardly like they're going to run out of things to produce any time soon.
That said, they might have to adjust the pricing for some of their nodes if demand from Nvidia and the "ai" companies goes down, but they will never run out of things to produce, as demand is much higher than what they can supply.

This is from June last year.

View attachment 380186

It’s WCCFtech but interesting if true.

TSMC Is Rumored To Have Rejected Samsung’s Alleged Proposal Of Mass Producing The Latter’s Exynos Chipsets Using Its Cutting-Edge Lithography

A tipster reveals that TSMC will not enter into any partnership with Samsung to mass produce the Korean giant’s Exynos chipsets

wccftech.com

Implications mean that IFS will not work so TSMC will be king for the foreseeable future.

 

[L0stS0ul]

Records from our wallets and pockets ;]

 

[TheLostSwede]

It’s WCCFtech but interesting if true.

TSMC Is Rumored To Have Rejected Samsung’s Alleged Proposal Of Mass Producing The Latter’s Exynos Chipsets Using Its Cutting-Edge Lithography

A tipster reveals that TSMC will not enter into any partnership with Samsung to mass produce the Korean giant’s Exynos chipsets

wccftech.com

Implications mean that IFS will not work so TSMC will be king for the foreseeable future.

Yeah, I saw that, but I guess we'll see how it plays out. TSMC might very well have turned down Samsung, but not for the reasons reported, but rather due to having full order books on the node(s) available for Samsung to produce its mobile chips on.
Considering TSMC makes chips for Intel, why would they turn down Samsung due to them having their own foundries?

Records from our wallets and pockets ;]

Only indirectly, but no-one forced you to buy new gear.

 

[Daven]

Considering TSMC makes chips for Intel, why would they turn down Samsung due to them having their own foundries?

Good point.

 

[TheinsanegamerN]

Yeah, I saw that, but I guess we'll see how it plays out. TSMC might very well have turned down Samsung, but not for the reasons reported, but rather due to having full order books on the node(s) available for Samsung to produce its mobile chips on.
Considering TSMC makes chips for Intel, why would they turn down Samsung due to them having their own foundries?

Because Samsung is a direct competitor. It was only 3 years ago that nvidia was using Samsung instead of TSMC. AMD could potentially use them, as could broadcomm, ece.

Intel hasnt really had any success in that field.