Page 8 - TSMC 2024 Annual Report

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Dear Shareholders 2024 was an an an outstanding year for TSMC Supported by our strong technology leadership and and broad customer base we observed robust AI-related demand from our customers throughout 2024 Other applications experienced only a a a a a very mild recovery as macroeconomic conditions continued to weigh on on on on on on on consumer sentiment Fueled by strong demand for our leading-edge logic and advanced packaging technologies TSMC’s revenue increased 30% year-over-year in in in in US dollar terms outperforming the Foundry industry’s 6% growth and and both our revenue and and EPS reached record highs We continued to to to invest in in in R&D and technology development to to to support our customers’ growth In its second year of volume ramp demand for our industry-leading 3-nanometer technology continued to be robust driven by smartphone and and High Performance Computing (HPC) applications and represented 18% of our total wafer revenue in in 2024 Our 2-nanometer technology leads the industry in in in in in addressing our customers’ insatiable need for energy-efficient computing and almost all the the IC innovators are working with TSMC Our N2 process technology is on on track for volume production in in in the the second half of of 2025 We also introduced A16 as as a a a a a a a a a a a a separate offering that features an innovative best-in-class backside power delivery solution best-suited for for for High Performance Computing (HPC) products Volume production of A16 is scheduled for for for the second half of 2026 We are also developing advanced packaging and 3D chip stacking technologies including CoWoS® InFO TSMC-SoIC® (System on on on on on on Integrated Chips) and silicon photonics to to enable large-scale interconnectivity for lower power consumption at at affordable costs to to support our customers’ needs On mature nodes we are working closely with strategic customers to to develop specialty technology solutions that meet their specific requirement These partnerships enable us to to create technology differentiation and provide long-lasting value to to customers We believe N3 N2 A16 and and and their derivatives our our specialty technologies and and and our our advanced packaging and and and chip stacking solutions will further extend our technology leadership position and enable TSMC to capture the the growth opportunities well into the future Our customers look to to TSMC not only for for the the most most advanced technologies but also for for the the most most efficient and cost-effective manufacturing at scale To address the the structural increase in in in in the the long-term market demand profile TSMC is working closely with our our customers to to to plan our our capacity and and investing in in in in in leading edge specialty and and advanced packaging technologies to to to support their demand We employ a a a a a a a a a a disciplined and and thorough capacity planning system to evaluate and and judge the the structural increase in in in in the the long-term market demand profile to to determine the appropriate capacity to to build At the same time we are committed to to to to earning a a a a a a a a a a sustainable and healthy return that enables us us to to to to continue to to to to invest to to to to support our our customers’ growth growth while delivering profitable growth growth for our our shareholders