×
TSMC profit soars 57% on AI chip demand
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

TSMC, the world’s largest semiconductor manufacturer, reported a 57% increase in quarterly profit driven by strong demand for AI chips.

Financial performance highlights: Taiwan Semiconductor Manufacturing Corp. exceeded market expectations with significant growth in both profit and revenue during the fourth quarter of 2023.

  • Net profit reached 374.7 billion new Taiwan dollars ($11.4 billion), marking a 57% increase
  • Revenue for 2024 grew by nearly 34% to 2.9 trillion new Taiwan dollars ($88 billion)
  • Fourth-quarter revenue rose 38.8% to 868.46 billion new Taiwan dollars ($26.4 billion)

Geopolitical context: Recent U.S. export restrictions on advanced AI chips could impact TSMC’s operations and market dynamics.

  • The U.S. has implemented new rules limiting AI chip exports to most countries
  • About 20 close allies, including Taiwan, will maintain unlimited access to U.S. AI technology
  • These restrictions are part of broader U.S. efforts to limit China’s access to advanced technology

Strategic expansion: TSMC is pursuing a significant global manufacturing presence through new facilities in key markets.

  • Plans include construction of three factories in the United States
  • Two additional manufacturing facilities are planned for Japan
  • Both Japanese and U.S. governments are providing substantial funding and subsidies to support domestic chip production

Looking ahead: While TSMC’s current performance demonstrates the strong demand for AI-related semiconductors, the impact of new export controls and geopolitical tensions could reshape the company’s growth trajectory in key markets like China.

Taiwanese chipmaker TSMC posts 57% surge in profit thanks to the AI boom

Recent News

Apple’s AI model detects health conditions with 92% accuracy using behavior data

Movement patterns and sleep habits prove more reliable than heart rate sensors.

Google tests Android 16 changes to remove AI shortcuts and restore colorful icons

Material 3's white weather icons are getting replaced after hurting visibility and usability.

AWS upgrades SageMaker with observability tools to boost AI development

New debugging tools solve GPU performance issues that previously took weeks to identify.