TSMC 2024 net profit hits new high, up almost 40%

Taipei, Jan. 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Thursday reported a new high in net profit for 2024, up nearly 40 percent from a year earlier.

In a statement released after the local stock market closed, TSMC, the world's largest contract chipmaker, said it posted NT$1.17 trillion (US$35.48 billion) in net profit, up 39.9 percent from a year earlier with earnings per share at NT$45.25, compared with NT$32.34 in 2023.

In 2024, TSMC reported NT$2.89 trillion in consolidated sales, also a record high and a 33.9 percent increase from a year earlier.

Meanwhile, the chipmaker's gross margin -- the difference between revenue and cost of goods sold -- rose 1.7 percentage points from a year earlier to 56.1 percent.

Market analysts attribute the growth to global solid demand for emerging technologies.

TSMC had forecast in an investor conference held in October that its 2024 sales would grow almost 30 percent from a year earlier in U.S. dollar terms.

In the fourth quarter alone, TSMC's net profit smashed previous records to reach NT$374.68 billion, up 57.0 percent from a year earlier and also up 15.2 percent from a quarter earlier. Its fourth quarter EPS stood at NT$14.45, up from NT$9.21 over the same period of the previous year, and up from NT$12.54 in the third quarter.

TSMC said its consolidated sales for the fourth quarter also hit a new high at US$26.88 billion, which came at the higher end of its estimate of US$26.1 billion to US$26.9 billion.

Analysts said demand for TSMC's 3-nanometer process and 5nm process was strong at a time of increasing popularity for emerging technologies, such as artificial intelligence applications, and the debut of new smartphones.

The 3nm is currently the most advanced technology currently being mass-produced by TSMC.

On the back of an increase in production capacity utilization and an improvement in productivity, TSMC's gross margin in the fourth quarter rose 1.2 percentage points from a quarter earlier to 59 percent, beating the company's forecast of 57-59 percent.

During the October-December period, the 3nm process accounted for 26 percent of TSMC's total sales, with the 5nm and the 7nm making up 34 percent and 14 percent, respectively. In other words, the advanced technologies represented about 74 percent of the chipmaker's revenue in the fourth quarter, up from 69 percent in the third quarter.

TSMC shares soared 3.76 percent to close at NT$1,105.00 on the local main board Thursday before the results were released. Analysts said many investors anticipated TSMC would give positive leads from an investor conference to open after market close.