TSMC logs file quarterly revenue, sees hefty income progress in early 2025

By Yimou Lee, Ben Blanchard and Religion Hung

TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co logged file quarterly revenue on Thursday and stated it expects hefty first-quarter income progress as demand surges for chips utilized in synthetic intelligence processing.

The world’s largest contract chipmaker, whose prospects embody Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), posted a 57% bounce in web earnings to T$374.68 billion ($11.4 billion) for the quarter ended Dec. 31, a file excessive for any quarter and in keeping with estimates. Income for the quarter climbed 39% from the identical interval a 12 months earlier.

It expects comparable income progress within the present quarter of 37%.

TSMC additionally stated it expects its capital spending for this 12 months to be between $38 billion and $42 billion, a rise of as a lot as 41%, sustaining its bullish outlook for AI demand.

The Taiwanese firm, nonetheless, faces headwinds from U.S. authorities expertise restrictions on China and uncertainty about President-elect Donald Trump’s incoming administration, which has threatened broad import tariffs.

The U.S. authorities stated on Monday it will additional prohibit AI chip and expertise exports, including to potential points TSMC may face, although Taiwan and different shut U.S. allies can be allowed limitless entry to U.S. AI expertise.

TSMC is spending billions of {dollars} on new factories abroad, together with $65 billion on three crops within the U.S. state of Arizona, although it says most manufacturing will stay in Taiwan.

The AI increase has helped drive up the worth of shares in Asia’s Most worthy firm, with TSMC’s Taipei-listed inventory hovering 81% final 12 months, in contrast with a 28.5% achieve for the broader market.

The inventory closed up 3.8% on Thursday forward of the earnings name.

($1 = 33.0390 Taiwan {dollars})