Taiwan Semiconductor Manufacturing Company (TSMC) posted remarkable third-quarter earnings of $23.5 billion for 2024. This marks a 13% increase from Q2 and a 36% rise compared to last year. The revenue boost reflects TSMC’s leadership in the semiconductor industry. The demand for semiconductors, especially for AI and smartphones, mainly drove this growth.
AI and Smartphones Fuel TSMC’s Growth
TSMC’s revenue surge stems from the growing demand for AI chips and smartphone components. High-performance computing (HPC) powered by AI made up 51% of TSMC’s Q3 revenue, underscoring AI’s importance in driving semiconductor demand. Smartphones contributed 34%, fueled by the launch of Apple’s iPhone 16. Global smartphone shipments grew by 4% year-over-year, with Chinese brands like Huawei and Xiaomi driving the growth.
Cutting-Edge Semiconductor Technologies Power Revenue Growth
TSMC’s strong performance also reflects its advanced semiconductor technologies. The 3-nanometer (3nm) process technology accounted for 20% of revenue, up from 15% in Q2. The 5nm technology contributed 32%, slightly down from the previous quarter. Despite this, demand for mature semiconductor nodes, such as the 7nm process, made up 17% of revenue, highlighting the need for a diverse range of semiconductor solutions.
Material Innovations and the Road Ahead
TSMC projects Q4 revenue between $26.1 billion and $26.9 billion, driven by continued demand for AI and smartphone chips. The company is also focusing on material innovations, particularly compound semiconductors like gallium nitride (GaN) and gallium arsenide (GaAs). These materials offer superior energy efficiency and will play a critical role in advancing AI and high-performance computing.
TSMC’s continued success emphasizes the importance of advanced materials and semiconductor technology in driving industry growth. The company’s innovations in 3nm process technology and adoption of energy-efficient materials like GaN and GaAs will help shape the future of AI and mobile technologies.
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