TSMC Q4 Revenue Surges 20% on AI Demand

On January 9, TSMC reported strong fourth-quarter revenue, rising 20.45% year-over-year, surpassing market expectations. The surge was driven by booming demand for chips in artificial intelligence applications.

Based on data compiled by analysts from the company's monthly disclosures, TSMC generated NT$1,046.08 billion (US$33.04 billion) in revenue from October to December, up from NT$868.46 billion in the same period last year. This performance comfortably exceeded the forecast of NT$1,035.913 billion (US$32.72 billion) predicted by 20 analysts surveyed by the London Stock Exchange Group, aligning closely with TSMC's earlier guidance of US$32.2–33.4 billion provided during its October earnings call.

TSMC is set to release its full fourth-quarter earnings report on January 15, which will include updated outlooks for both the current quarter and the full year.

As a key beneficiary of advances in AI, TSMC counts major technology leaders such as NVIDIA and Apple among its clients. Growth in AI-related demand has more than offset declines in consumer electronics chip demand caused by the pandemic, such as for tablets.

Meanwhile, Hon Hai (Foxconn) also reported strong sales on Monday, posting NT$2.60 trillion (US$82.2 billion) in revenue for the fourth quarter.