Taiwan Semiconductor Manufacturing Company (TSMC) Q4 and Full Year 2024 results: A year of growth and innovation
Overview
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, reported a fantastic performance in Q4 2024, driven by surging demand for advanced technology nodes and growth across key platforms such as High-Performance Computing (HPC) and Automotive.
Revenue Growth
- Q4 2024 revenue reached NT$868.46bn (+14.3% vs. Q3 2024 and +38.8% vs. Q4 2023).
- Full-year 2024 revenue totaled NT$2894.31bn (+33.9% YoY).
Profitability
- Gross margin improved to 59% (+1.2 ppts QoQ).
- On a full year basis, gross margin was 56.1% in 2024 (+1.7 ppts vs. 2023).
- Operating margin increased to 49% (+1.5 ppts QoQ and +7.4 ppts YoY).
- Net income attributable to shareholders reached NT$374.68 bn (+15.2% vs. Q3 2024 and +57.0% vs. Q4 2023).
Earnings Per Share (EPS)
- Q4 2024 diluted EPS stood at NT$14.45 (+15.2% QoQ).
- On a full year basis, EPS increased at NT$45.25 (+39.9% vs. 2023).
Cash Flow and Investments
- Free cash flow increased to NT$258.26bn in Q4 2024, compared to NT$184.91bn in Q3 2024.
- Total free cash flow generated in 2024 was NT$870.17bn, an increase from NT$292.15bn in 2023.
- Full-year capital expenditures reached $29.76bn, supporting ongoing innovation in semiconductor technology.
Technology and platform contributions
- 3nm technology revenue surged to 26% of total wafer revenue (+20% vs. Q3 2024 and +15% vs. Q4 2023).
- High-Performance Computing (HPC) accounted for 53% of revenue (+19% QoQ).
Geographic revenue distribution
- North America contributed 75% of total revenue, followed by China (9%) and Asia Pacific (9%).
To conclude, TSMC’s guidance for Q1 2025 reflects steady confidence in its market position and continued demand for its advanced technologies. Management projects revenue between $25.0bn and $25.8bn, with a gross profit margin expected to range from 57% to 59% and an operating profit margin between 46.5% and 48.5%. These projections underline the company’s strategic focus on profitability and growth as it navigates the competitive semiconductor industry in 2025.
On the day of the results announcement, investors reacted positively after the reports were published, and TSMC shares appreciated by approximately 3.86% on January 16th.
Author: Ionuț-Adrian Lazar
