TSMC, the renowned semiconductor manufacturer, continues to defy market expectations with its impressive financial performance. In November 2024, the company reported a consolidated revenue of NT$276.058 billion, which is roughly equivalent to US$8.504 billion. While this figure represents a 12.2% decline from October’s peak, it nevertheless signals a robust year-over-year growth of 34%. From the beginning of the year until November, TSMC’s cumulative revenue reached around NT$2.61 trillion, showcasing an impressive year-over-year increase of 31.8%.
Earlier this year, TSMC had projected that its fourth-quarter revenue would range between US$26.1 billion and US$26.9 billion. When converted at an exchange rate of US$1 to NT$32, this sets revenue predictions between NT$835.2 billion and NT$860.8 billion, with estimated gross margins of approximately 57% to 59% and operating margins from 46.5% to 48.5%.
October was a landmark month for TSMC, buoyed by substantial orders from major clients such as Apple. The company’s consolidated revenue for October soared to NT$314.24 billion, marking the first time in history that the monthly revenue exceeded NT$300 billion and setting a new monthly record. Despite slower demand in the smartphone and PC sectors, the persistent strong demand for AI chips has helped cushion the impact, resulting in a smaller-than-expected revenue decline.
As of October and November, combined revenue stands at NT$590.298 billion. To hit the high end of its quarterly revenue forecast, TSMC needs to achieve just about NT$270.5 billion in December. The company has also adjusted its annual dollar revenue growth forecast for 2024, raising expectations from 24%-26% to nearly 30%.
TSMC’s manufacturing prowess is underscored by full capacity utilization of its 5nm and 3nm processes. Despite the U.S. AI chip ban restricting Chinese clients’ access to wafer production, TSMC remains largely unscathed. With an achievable annual revenue growth target of 20%, the company’s future appears promising.
Industry insiders suggest that due to capacity constraints and cost pressures, TSMC plans to increase prices for its 5nm and 3nm processes, as well as its CoWoS advanced packaging services, in 2025. This move reflects strategic adjustments to maintain profitability and cater to burgeoning market demands.
