- Net revenue: NT$592.64 billion ($18.87 billion) compared to the expected NT$582.94 billion
- Net income: NT$225.49 billion, forecast NT$213.59 billion
TSMC reported that its net revenue was NT$592.64 billion, an increase of 16.5% year-on-year, and its net profit was NT$225.49 billion, an increase of 8.9% year-on-year. The company forecast first-quarter sales of $18 billion to $18.8 billion.
TSMC is the world’s largest manufacturer of advanced processors and counts companies such as Nvidia and Apple among its customers.
“TSMC is well-positioned to achieve strong performance based on key industry trends. Continued demand for advanced chips, especially those used in AI applications, will continue to grow in both the short and long term. “The transition to 3nm technology is also another factor driving long-term growth for TSMC,” Brady Wang, associate director at Counterpoint Research, said on Monday ahead of the results.
TSMC currently produces 3-nanometer chips and plans to begin mass production of 2-nanometer chips in 2025. Smaller nanometer sizes typically result in more powerful and efficient chips.
TSMC stock has soared 56% over the past year, driven by strong demand for AI chips driven by the proliferation of large-scale language models such as ChatGPT and Chinese clones.
TSMC accounted for 61% of global foundry revenue in the fourth quarter, according to data from Counterpoint Research. Samsung Foundry came in second with a market share of 14%.
“TSMC’s net profit margin remains at the highest level in the company’s history at 40% compared to the industry average of 14%, demonstrating TSMC’s strong competitive position. “This is a result of an increased share of sales of chips with significantly higher profit margins,” Grzegorz Droz, market analyst at Conotoxia, said last week.
The United States recently granted preliminary approval for up to $6.6 billion in government funding to TSMC’s Arizona subsidiary to manufacture the world’s most advanced semiconductors. TSMC is also eligible for approximately $5 billion in proposed financing.
Earlier this month, Taiwan was hit by the strongest earthquake in 25 years. A TSMC spokesperson said the construction site was business as usual. Although initial inspections temporarily evacuated some factory workers. Those workers then returned to work.
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