Taiwan Semiconductor Manufacturing Company (TSM) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue reached NT$868.46 billion, up 14.4% sequentially and up to 38.8% year-over-year; net income was NT$374.68 billion, a 15.2% increase from Q3 and 57.0% higher YoY.

• EPS for Q4 2024 was NT$14.45, up 15.2% sequentially and 57.0% year-over-year.

• Full-year 2024 revenue was NT$2,894.31 billion, up 33.9% from 2023, with net income of NT$1,172.4 billion, a 40% increase.

• Full-year EPS rose to NT$45.25 from NT$32.34 in 2023.

• ROE for 2024 was 30.3%, up 4.1 percentage points from 2023.

Financial highlights

• Gross margin for Q4 2024 was 59.0%, up 1.2 points sequentially and 6.0 points year-over-year; full-year gross margin was 56.1%.

• Operating margin for Q4 was 49.0%, up 1.5 points sequentially and 7.4 points YoY; full-year operating margin was 45.7%.

• Net profit margin for Q4 was 43.1%, up 0.3 points from Q3 and 4.9 points from Q4 2023.

• Free cash flow for Q4 was NT$258.26 billion; full-year free cash flow was NT$870.17 billion, up 197.9% from 2023.

• Cash and marketable securities at year-end were NT$2,422.02 billion, a 43.5% increase from 2023.

Outlook and guidance

• Q1 2025 revenue expected at $25–25.8B, a 5.5% sequential decline but 34.7% YoY increase at midpoint.

• Q1 2025 gross margin guided at 57–59%, operating margin 46.5–48.5%.

• Full-year 2025 revenue forecast to increase close to mid-20% in USD terms.

• Long-term gross margin target remains at 53% and higher, despite overseas fab dilution.

• The company continues to invest in capacity expansion and technology leadership, supported by strong cash flows and government grants.