On mature nodes, we are working closely with strategic customers to develop specialty technology solutions that meet their specific requirement. These partnerships enable us to create technology differentiation and provide long-lasting value to customers.

We believe N3, N2, A16 and their derivatives, our specialty technologies, and our advanced packaging and chip stacking solutions, will further extend our technology leadership position, and enable TSMC to capture the growth opportunities well into the future.

Our customers look to TSMC not only for the most advanced technologies, but also for the most efficient and cost-effective manufacturing, at scale. To address the structural increase in the long-term market demand profile, TSMC is working closely with our customers to plan our capacity, and investing in leading edge, specialty and advanced packaging technologies to support their demand.

We employ a disciplined and thorough capacity planning system to evaluate and judge the structural increase in the long-term market demand profile, to determine the appropriate capacity to build.

At the same time, we are committed to earning a sustainable and healthy return that enables us to continue to invest to support our customers’ growth, while delivering profitable growth for our shareholders.

Part of this strategy includes expanding our global manufacturing footprint based on our customers’ needs, as they value geographic flexibility, and a necessary level of government support. This is to maximize the value for our shareholders.

We have made significant progress in our overseas expansion in 2024. In Arizona, our first fab entered high-volume production utilizing N4 process technology in 4Q’24, earlier than scheduled. The yields are comparable to our fabs in Taiwan, and with our manufacturing capability and execution, we are confident to deliver the same level of manufacturing quality and reliability as our fabs in Taiwan.

In Japan, our first specialty technology fab in Kumamoto began volume production at the end of 2024, with very good yield. In Europe, we held a ground-breaking ceremony in Dresden, Germany in August, and are progressing smoothly with our plans to build a specialty technology fab, focusing on automotive and industrial applications.

In Taiwan, we continue to invest in and expand our advanced technology and packaging capacities, including 3nm, 2nm and CoWoS^® technology capacities, across several locations.

As the world’s most reliable and effective capacity provider, TSMC will continue to play a critical and integral role in the global semiconductor industry, while supporting our customers’ growth.

Highlights of TSMC’s accomplishments in 2024:

• Total wafer shipments were 12.9 million 12-inch equivalent wafers as compared to 12.0 million 12-inch equivalent wafers in 2023.
• Advanced technologies (7-nanometer and beyond) accounted for 69 percent of total wafer revenue, up from 58 percent in 2023.
• We deployed 288 distinct process technologies, and manufactured 11,878 products for 522 customers.
• TSMC represented 34 percent of the Foundry 2.0 industry, which we define as all logic wafer manufacturing, packaging, testing, mask-making and others, output value in 2024, as compared to 28 percent in the previous year.

2024 Financial Performance

Consolidated revenue reached NT$2,894.31 billion, an increase of 33.9 percent over NT$2,161.74 billion in 2023. Net income was NT$1,173.27 billion and diluted earnings per share were NT$45.25. Both increased 39.9 percent from the 2023 level of NT$838.50 billion net income and NT$32.34 diluted EPS.

In US dollar terms, TSMC generated net income of US$36.52 billion on consolidated revenue of US$90.08 billion, which increased 35.9 percent and 30.0 percent respectively from the 2023 level of US$26.88 billion net income and US$69.30 billion consolidated revenue.

Gross profit margin was 56.1 percent as compared with 54.4 percent in 2023, while operating profit margin was 45.7 percent compared with 42.6 percent a year earlier. Net profit margin was 40.5 percent, an increase of 1.7 percentage points from 2023’s 38.8 percent.

In 2024, the Company further raised its total cash dividend payments to NT$14.0 per share, up from NT$11.25 a year ago.

Outlook

Entering 2025, we expect the overall foundry industry to continue a sustaining and mild recovery, even as macroeconomic uncertainties persist. At the same time, we expect 2025 to be another healthy growth year for TSMC, as our technology leadership enables TSMC to win business, and further enables our customers to win business in their end markets.

Continued AI-related demand in 2025 supports our already-strong conviction that the structural demand for energy-efficient computing will accelerate, as everything around us becomes more intelligent and connected.  

We are entering an AI-empowered world, where artificial intelligence not only runs in datacenters, but will run in PCs, smartphones, automobiles, and even Internet-of-Things devices in the future.

AI also comes in many different forms, including but not limited to Generative AI applications such as ChatGPT, which consumers have become familiar with thanks to its ease of use and expansive range of potential applications.

Enterprise is another driver of AI demand. Many companies, including TSMC, are using AI to create more value by driving greater productivity, efficiency, speed and quality gains. As a direct user of AI in our fab and R&D operations, we are deriving tangible ROI benefits from our investments in AI and machine learning. TSMC is by no means the only company in the world doing this, so Enterprise AI is another source of AI demand to support the multi-year structural trends.

AI technology is evolving to use ever-increasingly complex AI models, which needs to be supported by more powerful semiconductor hardware.

Thus, the value of our technology platform is increasing, as customers rely on TSMC to provide the most advanced process and packaging technologies at scale, in the most efficient and cost-effective manner.

By upholding our Trinity of Strengths of Technology Leadership, Manufacturing Excellence, and Customer Trust, we can cast a wide net and work with all the IC innovators, and enable our customers to unleash their innovations in their end markets.

Thus, we are well-positioned to address the growth from the industry megatrends of 5G, AI and HPC, with our differentiated technologies.

TSMC’s mission is to be the trusted technology and capacity provider for the global logic IC industry for years to come. Our success is predicated on our unwavering dedication to the pure-play foundry business model, and our job is to serve our customers and enable them to be successful. 

As the world’s most reliable and effective capacity provider, we understand our responsibility as critical and integral player in the global semiconductor industry. We will continue to invest in technology and capacity to support our customers’ growth, while ensuring we earn a sustainable and healthy return for our shareholders.

It is TSMC’s core values of Integrity, Commitment, Innovation, and Customer Trust that have earned our customers’ confidence to grow and prosper together. We hope to earn the same confidence from our shareholders, by continuing to deliver profitable growth and maximizing the value for our shareholders in the years to come.