By South China Morning Post | Created at 2025-01-10 10:10:01 | Updated at 2025-01-15 09:29:59
4 days ago
The go-to chipmaker for Apple and Nvidia reported a 39 per cent rise in October-December revenue to NT$868.5 billion (US$26.3 billion), based on calculations off monthly disclosures. That compares with an average estimate of NT$854.7 billion.
The strong showing from Taiwan’s largest company bolsters expectations that Big Tech companies, from Google parent Alphabet to Microsoft, will continue to build and upgrade data centres at a rapid clip to propel AI development.
This month, Taiwanese AI server maker Foxconn Technology Group – formally known as Hon Hai Precision Industry – reported better-than-expected sales, while Microsoft outlined plans to spend US$80 billion in its current financial year on data centres.
Growth accelerated for TSMC in December, capping 34 per cent revenue growth for 2024. That compares with TSMC’s official target of a 30 per cent annual rise, though that outlook was expressed in US dollar terms. The world’s largest contract manufacturer of advanced chips has been one of the biggest beneficiaries of a global race to develop AI.
TSMC’s market value nearly doubled in 2024, and it now trades in the United States at a valuation close to US$1.1 trillion. Yet some investors worry about when the AI boom will peter out.
