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 38.8% year-over-year, driven by strong demand for 3nm and 5nm technologies.

• Net income for Q4 was NT$374.68 billion, a 15.2% increase from Q3 and 57.0% higher year-over-year; EPS was NT$14.45.

• Full-year 2024 revenue was NT$2,894.31 billion (US$90B), up 33.9% in NT$ and 30% in USD; ROE for 2024 was 30.3%.

• AI-related demand was a key growth driver, with AI accelerator revenue tripling and expected to double in 2025.

• Advanced nodes and HPC platforms led growth, with free cash flow and cash reserves at record highs.

Financial highlights

• Q4 2024 gross margin was 59.0%, up 1.2 points sequentially and 6.0 points year-over-year; operating margin reached 49.0%.

• Net profit margin for Q4 was 43.1%; full-year gross margin was 56.1%, operating margin 45.7%, and net profit margin 40.5%.

• Free cash flow for Q4 was NT$258.26 billion; full-year free cash flow was NT$870.17 billion.

• Cash and marketable securities at year-end were NT$2,422.02 billion (US$74B), up 43.5% from 2023.

• Paid NT$363.05 billion in cash dividends in 2024, up 24.5% year-over-year.

Outlook and guidance

• Q1 2025 revenue expected at US$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.

• Forward-looking statements are subject to significant risks and uncertainties.