TSMC Reports 57% Increase in Profit Driven by AI Boom

HONG KONG (AP) — Taiwan's leading computer chip manufacturer, TSMC, announced on Thursday that its profit for the last quarter surged by 57%, largely due to the booming artificial intelligence (AI) industry.

TSMC, known as the world's largest semiconductor producer, revealed a net profit of 374.7 billion new Taiwan dollars (approximately $11.4 billion), which exceeded analysts' expectations.

Recently, TSMC reported that its revenue for 2024 increased by almost 34%, reaching 2.9 trillion new Taiwan dollars (around $88 billion). Specifically, revenue for the fourth quarter rose by 38.8%, amounting to 868.46 billion new Taiwan dollars (about $26.4 billion), significantly outperforming forecasts.

Amidst rising tensions over trade and technology between the U.S. and China, TSMC has faced various challenges. The U.S. government announced this week that it would impose further restrictions on the export of chips used in AI and other advanced technologies, aiming to limit China's access to these crucial components. This new set of regulations restricts the number of AI chips that can be exported to various countries, while around 20 of the U.S.'s close allies, including Taiwan, will continue to have unfettered access to American AI technology.

Despite these restrictions, TSMC is expanding its operations and plans to establish three factories in the U.S. and two additional ones in Japan. Both the Japanese and U.S. governments are providing substantial funding and subsidies to TSMC to enhance domestic chip production, which may benefit TSMC in the long run.

TSMC, profit, AI