TSMC Boosts 2024 Revenue by 30% Fueled by Rising AI Chip Demand

TSMC

Surge in High-Performance Computing and AI Applications Drives Growth

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading semiconductor manufacturer, reported a 30% increase in revenues last year, reaching $90.08 billion. This significant growth was primarily driven by heightened demand for chips utilized in high-performance computing (HPC) and artificial intelligence (AI).

Quarterly Performance and Sector Breakdown In the fourth quarter alone, TSMC's revenue soared by 37% year-over-year to $26.88 billion. HPC chips emerged as the primary revenue generator, accounting for 51% of total revenue, up from 43% in 2023. In contrast, revenue from smartphone applications slipped to 35% from 38%, reflecting a slight shift in market dynamics. Additionally, the Internet of Things (IoT) and automotive sectors contributed 6% and 5% to the revenue, respectively.

Strategic Expansions and Future Outlook 

TSMC is setting revenue targets between $25 billion and $25.8 billion for the current quarter, anticipating a seasonal dip in smartphone demand. Meanwhile, the demand for AI accelerators continues to grow, with TSMC's CEO, CC Wei, expecting it to remain a strong revenue driver in the foreseeable future. The company's strategic expansions include the commencement of high-volume production at a new fabrication plant in Arizona and plans for a new facility in Dresden, Germany, dedicated to automotive chip production.