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Taiwan Semiconductor Manufacturing Co (TSMC) has reported record quarterly profits and forecasts strong revenue growth in early 2025, driven by surging demand for chips powering artificial intelligence (AI) technologies.

The company posted a 57% increase in net income, reaching $11.4 billion for the fourth quarter of 2024, alongside a 39% year-over-year revenue increase.

This marks the highest quarterly profit in the company's history and aligns with market expectations.

For the current quarter, TSMC anticipates revenue growth of approximately 37%, projecting a range of $25 billion to $25.8 billion.

For the full year of 2025, the chipmaker expects revenue growth to settle between 20% and 30%, reflecting continued optimism about the expanding AI market.

TSMC’s Chief Executive C.C. Wei expressed confidence in navigating challenges posed by U.S. export restrictions on AI chips to China, which were recently tightened under the Biden administration.

Wei revealed that the company is applying for special permits to support affected clients and is optimistic about obtaining necessary approvals.

He also emphasized ongoing collaboration with both the current U.S. government and the incoming administration under President-elect Donald Trump, who has signaled potential trade policy shifts.

The company, whose key clients include Apple and Nvidia, is scaling up its global operations, with plans to invest $38 billion to $42 billion in capital expenditures for 2025 — an increase of up to 41% from the prior year.

New fabrication facilities in the United States, Japan, Germany, and Taiwan remain on schedule.

TSMC’s stock has benefited significantly from the AI-driven demand surge, with its shares in Taipei climbing 81% last year, outperforming the broader market’s 28.5% gain.

As the world’s largest contract chipmaker, TSMC continues to capitalize on its leadership position in advanced semiconductor manufacturing, underscoring its pivotal role in the global technology ecosystem.

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