TSMC posts strong year-on-year revenue growth of 34% despite month-to-month slowdown — foundry pulls in $8.5B in revenue for November 2024

Taiwan Semiconductor Manufacturing Company (TSMC) reported a consolidated revenue of NT$276.058 billion (US$8.504 billion) for November 2024. This represents a 34% year-over-year increase, bolstered by continued strong demand for AI chips. However, revenue declined 12.2% from October’s record NT$314.24 billion, marking the first time the company exceeded NT$300 billion in monthly revenue.

For the year-to-date period (January to November 2024), TSMC’s revenue reached NT$2.61 trillion, reflecting a 31.8% annual growth. TSMC credits this performance to its leadership in advanced process nodes such as 5nm and 3nm. It is fully utilized to meet the surging demand from AI-related industries and major clients like Apple.

Industry analysts noted that TSMC’s consistent ability to scale advanced manufacturing processes has made it a critical supplier for sectors transitioning to AI-centric operations. This aligns with TSMC’s increased focus on CoWoS (Chip on Wafer on Substrate) advanced packaging services essential for high-performance AI applications.

TSMC’s fourth-quarter revenue is projected to range between US$26.1 billion and US$26.9 billion (NT$835.2 billion to NT$860.8 billion), indicating an 11%-14% quarter-over-quarter increase. The company is expected to achieve this target comfortably, with cumulative October-November revenue totaling NT$590.298 billion. For December, revenue would need to hit just NT$270.5 billion to meet the high end of its guidance.

Following the revenue report, TSMC’s stock price demonstrated strong performance, reinforcing investor confidence in the company’s growth trajectory despite broader economic uncertainties. Analysts have pointed out that TSMC’s dominance in high-performance computing and AI markets shield it from the cyclical pressures affecting traditional semiconductor markets.