Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, reported record revenue for 2024, driven by the rapid growth in demand for AI-related technology.
The company posted a substantial 868.5 billion New Taiwan dollars ($26.3 billion) in revenue for the December quarter, marking a 38.8% year-on-year increase and exceeding analyst expectations.
This result pushed TSMC’s total revenue for 2024 to 2.9 trillion New Taiwan dollars, setting a new high for the company since it went public in 1994.
TSMC manufactures semiconductors for some of the world’s biggest companies, including Apple and Nvidia, and is recognized for its ability to produce the most advanced chips on the market.
The increasing demand for AI chips, especially AI graphics processing units (GPUs) like those designed by Nvidia, has been a key factor behind TSMC’s success.
According to Brady Wang, associate director at Counterpoint Research, TSMC’s 3-nanometer and 5-nanometer chips, which are its most advanced, have consistently seen capacity utilization rates exceeding 100%.
The rising need for powerful AI chips, particularly for tasks such as machine learning and data processing, has fueled TSMC’s growth, positioning the company as a critical player in the AI-driven technology revolution.
Over the last year, TSMC’s shares have surged by 88%, reflecting investor confidence in the company’s strong position in the AI sector.
The solid revenue figures also offer optimism that the demand for AI chips and related technologies will continue to drive growth into 2025.
Other companies in the tech sector, such as Foxconn, which assembles Apple’s iPhones, have also seen strong revenue growth driven by AI server demand.
Furthermore, Microsoft has committed to investing $80 billion in building data centers designed to handle AI workloads, signaling continued industry-wide growth and investment in AI technologies.
