TSMC logs record quarterly profit, sees hefty revenue growth in early 2025 By Reuters

By Yimou Lee, Ben Blanchard and Faith Hung

TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co logged record quarterly profit on Thursday and said it expects hefty first-quarter revenue growth as demand surges for chips used in artificial intelligence processing.

The world’s largest contract chipmaker, whose customers include Apple (NASDAQ:) and Nvidia (NASDAQ:), posted a 57% jump in net income to T$374.68 billion ($11.4 billion) for the quarter ended Dec. 31, a record high for any quarter and in line with estimates. Revenue for the quarter climbed 39% from the same period a year earlier.

It expects similar revenue growth in the current quarter of 37%.

TSMC also said it expects its capital spending for this year to be between $38 billion and $42 billion, an increase of as much as 41%, maintaining its bullish outlook for AI demand.

The Taiwanese company, however, faces headwinds from U.S. government technology restrictions on China and uncertainty about President-elect Donald Trump’s incoming administration, which has threatened broad import tariffs.

The U.S. government said on Monday it would further restrict AI chip and technology exports, adding to potential issues TSMC could face, though Taiwan and other close U.S. allies will be allowed unlimited access to U.S. AI technology.

TSMC is spending billions of dollars on new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan.

The AI boom has helped drive up the price of shares in Asia’s most valuable company, with TSMC’s Taipei-listed stock soaring 81% last year, compared with a 28.5% gain for the broader market.

The stock closed up 3.8% on Thursday ahead of the earnings call.

($1 = 33.0390 Taiwan dollars)