World's Largest Chip Maker, Taiwan Semiconductor Manufacturing, Posts Record Sales

The world's largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Co. (TSMC), closed 2024 with record-breaking revenue, underscoring the ongoing surge in artificial intelligence (AI) investments. For the October-December quarter, TSMC reported revenue of NT$868.5 billion ($26 billion), surpassing analysts' consensus forecast of NT$854 billion, according to data.

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Annual revenue for 2024 reached NT$2.9 trillion, representing a robust 34% increase compared to the previous year. While December’s revenue of NT$278 billion marked a notable achievement, it fell short of the year's peak revenue of NT$314 billion recorded in October.

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As a critical supplier of advanced semiconductors, TSMC provides chips for leading technology giants such as Nvidia and Apple. The company’s U.S.-listed shares surged by an impressive 89% in 2024, marking their strongest annual performance since 1999. This rally was fueled by a broader upswing in technology stocks, which played a pivotal role in driving stock market gains. In early 2025 trading, TSMC’s U.S.-listed shares advanced another 1.5%.

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Although TSMC shares have gained approximately 5% so far in 2025, they experienced some weakness this week. This dip coincided with a lackluster performance by Nvidia after CEO Jensen Huang’s address at the CES consumer electronics show failed to meet investor expectations.

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A report by JPMorgan, led by analyst Gokul Hariharan, highlighted that TSMC’s fourth-quarter outperformance was supported by the ramp-up of its next-generation N3 processing nodes for clients like Qualcomm and MediaTek.

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This growth helped offset the seasonal slowdown in Apple’s product cycle. TSMC is set to officially release its fourth-quarter results on January 16, and JPMorgan anticipates the company will reflect continued strong sales momentum with only a modest 1% decline in U.S. dollar revenue.

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The seasonal dip in demand from Apple is expected to be counterbalanced by sustained interest in TSMC’s N3 nodes from Intel, Qualcomm, and MediaTek. Additionally, demand for cryptocurrency mining is likely to provide further upside. JPMorgan also foresees heightened demand for TSMC’s N5 nodes, particularly driven by Nvidia’s Blackwell AI chips. Media reports have indicated that Nvidia is discussing potential production of these chips at TSMC’s Arizona facility.

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Furthermore, demand for GPUs, AI accelerators, and high-end smartphone restocking in China is expected to boost revenue.

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JPMorgan projects that 2025 will be another banner year for TSMC, forecasting U.S. dollar revenue growth of approximately 27%. This outlook is underpinned by multiple factors, including sustained demand for TSMC’s cutting-edge technologies. The company’s advanced N3 and N5 chips are anticipated to maintain full utilization rates, bolstered by expected price increases. Additionally, TSMC’s advanced packaging technology is poised to contribute significantly to revenue growth, driven by strong market demand.

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TSMC’s N3 and N5 nodes, considered industry-leading technologies, are critical for powering innovations in AI, data centers, and high-performance computing. The company’s ability to meet the demands of its clients, including Nvidia, Intel, and Qualcomm, underscores its dominant position in the semiconductor market. Price hikes for these advanced chips are expected to enhance profitability while ensuring continued investment in research and development.

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The broader market dynamics also favor TSMC’s growth. The increasing adoption of AI across industries, coupled with the rise of edge computing and 5G technologies, continues to drive the demand for high-performance semiconductors.

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Moreover, the company's expansion into advanced packaging further positions it to capture additional market share, as clients seek more efficient and integrated chip solutions.

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TSMC’s growth trajectory aligns with broader trends in the semiconductor industry, which remains at the heart of technological innovation. The company’s strategic investments in state-of-the-art manufacturing facilities, such as its Arizona plant, reflect its commitment to meeting global demand while diversifying its geographic footprint. These initiatives not only enhance TSMC’s production capabilities but also strengthen its resilience against potential geopolitical risks.

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In conclusion, TSMC’s record-breaking revenue for 2024 and its optimistic outlook for 2025 highlight its pivotal role in the semiconductor industry. With continued demand for advanced nodes, strategic partnerships with industry leaders, and a focus on innovation, TSMC is well-positioned to maintain its leadership in a rapidly evolving market. As AI and other advanced technologies continue to gain traction, TSMC's cutting-edge solutions are set to remain integral to the tech ecosystem, driving further growth and success in the years ahead.

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