On January 16, TSMC announced its impressive earnings for the fourth quarter of 2024, showcasing remarkable growth. The financial report revealed that Q4 revenue reached NT$868.46 billion, a 38.8% year-over-year increase, significantly exceeding market expectations of NT$855.34 billion. Net profit for the quarter was NT$374.68 billion, an increase of 57% from NT$238.44 billion in the same period last year, also surpassing predictions.

Additionally, the operating profit for Q4 was NT$425.71 billion, reflecting a 64% year-over-year growth, surpassing the forecast of NT$411.42 billion. The operating margin stood at 49%, higher than the market expectation of 48.1%, and up from 47.5% in the previous quarter. The gross margin for Q4 was 59%, exceeding the forecast of 58.5%, while the previous quarter's gross margin was 57.8%.

In terms of capital expenditure, TSMC expects to spend US$29.76 billion in 2024, a 34% increase year-over-year, slightly above the forecast of US$29.5 billion. The projected sales for 2024 are anticipated to reach NT$2.89 trillion, while research and development expenditure is set at NT$204.18 billion, reflecting a 12% increase and close to the estimate of NT$205.98 billion. In terms of technology shipments, Q4 saw 3nm process shipments accounting for 26% of total wafer revenue, 5nm for 34%, and 7nm for 14%. Advanced technologies (defined as those 7nm and below) made up 74% of total revenue.

During the earnings call, TSMC projected that first-quarter sales would be between US$25 billion and US$25.8 billion, exceeding the market estimate of US$24.43 billion. Gross margin is expected to be between 57% and 59%, and operating margin is projected at 46.5% to 48.5%, both above market forecasts. Furthermore, capital expenditure for 2025 is expected to reach US$38 billion to US$42 billion, with revenue growth projected to approach the mid-point of 20%.

However, on January 21, a 6.4 magnitude earthquake struck Chiayi County in Taiwan, causing temporary shutdowns in TSMC's advanced process production lines in Tainan, resulting in some equipment displacement. Preliminary estimates suggest that 10,000 to 20,000 wafers may be scrapped. TSMC stated that all facilities swiftly initiated safety measures to ensure employee safety, and personnel were accounted for by 1 a.m., confirming no safety hazards. Recovery of production will take some time and is expected to impact subsequent shipment schedules.

Despite TSMC's southern plant having a seismic design rated above 7, the prolonged shaking from this earthquake posed risks to equipment positioning. The southern plant is crucial for 3nm and 5nm wafer production, serving major clients such as NVIDIA, AMD, and Intel. Analysts estimate that the damage may result in 10,000 to 20,000 wafers being lost, and whether this will affect customer shipment schedules will depend on the recovery process.

How to Trade on uSMART

After logging into the uSMART HK APP, click on the search icon at the top right of the screen. Enter the stock code, such as "TSM.US" to access detailed information, trading history, and trends. Click the “Trade” button at the bottom right, select the “Buy/Sell” function, and submit your order after filling in the transaction conditions.

（Source: uSMART HK）