• TSMC has announced a record quarterly profit of T$374.68 billion (US$11.4 billion), a 57% increase from the previous year.
• The Taiwanese semiconductor giant expects a robust revenue growth of 37% in the first quarter of 2025.
• The company faces challenges due to ongoing U.S. export restrictions on technology affecting China.

On January 16, 2025, the Taiwan Semiconductor Manufacturing Company (TSMC) reported a remarkable quarterly profit, marking a significant moment in its financial history. The world’s largest contract chipmaker, which supplies major tech companies like Reuters noted, achieved a 57% surge in net income to T$374.68 billion (approximately US$11.4 billion) for the quarter ending December 31, 2024.

This record profit aligns with consistent market expectations, as TSMC also experienced a 39% increase in revenue compared to the same quarter last year. Looking ahead, TSMC anticipates similar revenue growth of around 37% for the first quarter of 2025, an optimistic outlook fueled by the soaring demand for artificial intelligence (AI) chips as reported by South China Morning Post.

Nevertheless, TSMC is navigating some headwinds as the U.S. government has recently extended its technology restrictions on China. This included further limits on AI chip and tech exports, which raise potential roadblocks for TSMC despite the U.S. allowing its close allies unlimited access to these technologies. Furthermore, uncertainty surrounding the incoming administration of President-elect Donald Trump adds an additional layer of complexity, given prior threats of wide-ranging import tariffs.

Despite these challenges, TSMC is committed to substantial capital investments, projecting spending in the range of US$38 billion to US$42 billion for 2025—reflecting an increase of up to 41%. The company is heavily investing in expansion plans, which include setting up new factories in the United States and other locations, while still maintaining a strong manufacturing base in Taiwan. The AI boom has significantly impacted TSMC's stock performance, with shares soaring by 81% last year, outstripping the broader market, which gained 28.5%.

In summary, TSMC's robust quarterly performance illustrates the company's strategic positioning to capitalize on the growing AI segment while managing the multifaceted challenges posed by regulatory landscapes.

For further information, you can read the full articles on Reuters and South China Morning Post.