Despite challenges from US restrictions and potential tariffs under the incoming Trump administration, TSMC expects a 58% increase in 4Q24 profit, driven by AI demand.
Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s largest contract chipmakers, will reportedly see a 58% increase in its fourth-quarter profit, driven by strong demand for chips, particularly from artificial intelligence (AI) applications.
According to a report by the Economic Times, the company, which counts major firms such as Apple and Nvidia among its customers, has benefited from the growing AI sector. However, it also faces challenges, including US government technology restrictions on China and the uncertainty surrounding President-elect Donald Trump’s administration, which has indicated it may impose broader import tariffs.
The company recently announced a rise in Taiwan dollar revenue for the fourth quarter, surpassing market expectations.
TSMC is set to report a net profit of T$377.95 billion (approximately $11.41 billion) for the quarter ending December 31, according to an LSEG estimation based on 22 analysts’ projections. This is a significant increase from the T$238.7 billion net profit reported for the same period in 2023.
Brett Simpson, co-founder of Arete Research, indicated that AI demand will continue to drive TSMC’s growth in 2025.
He also expressed optimism about the company’s potential to build a strong relationship with the new US administration, especially with its major foreign investment in Arizona, which is currently the largest foreign direct investment project in the US.
Despite expanding its overseas operations, including a $65 billion investment in three Arizona factories, TSMC has stated that most manufacturing will remain in Taiwan. Analysts, including Edward Chen of Fubon Financial, have highlighted that the performance of the Arizona facility and the potential impact of tariffs will be key factors in the company’s outlook.
TSMC is also expected to update its forecasts for the current quarter and the full year, including its capital expenditure plans, as it works to expand production.
