TSMC January Revenue Up 35.9%, Q1 Impact from Earthquake

On February 10, TSMC announced its financial results for January, reporting a revenue of approximately NT$293.29 billion, marking a 5.4% month-over-month increase and a 35.9% year-over-year growth.

However, the company noted that the earthquake that struck Taiwan on January 21 had an impact on its first-quarter forecast. TSMC has revised its expected Q1 2025 revenue outlook, predicting it will align with the lower range of its previous forecast, which was between $25 billion and $25.8 billion.

The earthquake, with a magnitude of 6.4 on the Richter scale, and subsequent aftershocks, including those during the Lunar New Year period, did not cause structural damage to TSMC's wafer fabrication plants. All systems for water supply, electricity, and safety operations remain fully functional. However, some wafers in production were affected by the tremors. As a result, the company expects its Q1 2025 revenue to approach the lower end of the previously projected range. TSMC also estimates the earthquake-related losses, after insurance claims, to be around NT$5.3 billion.

Despite these challenges, the company maintains a positive outlook, with a gross margin forecasted to remain between 57% and 59%, and an operating profit margin between 46.5% and 48.5%. The company expects the gross margin to stabilize at 58%, driven by the expansion of N2 and CoWoS technologies, as well as the ramp-up of production at overseas fabs.

In addition, TSMC will hold its board meeting in the United States for the first time on February 11-12. This historic meeting is expected to focus on key topics, including the distribution of Q4 2024 dividends, Q1 2025 capital budgets, and, notably, TSMC's response to the evolving global geopolitical landscape. This marks the first time in the company's 37-year history that a board meeting will be held in the U.S., attracting significant attention amidst ongoing geopolitical tensions, including the U.S.-China trade disputes.