TSMC breaks record with December revenue backed by relentless AI demand

TSMC is making headlines again with its AI exploits. The world’s largest chipmaker raked in 868.5 billion New Taiwan dollars ($26.3 billion) in revenue for December 2024.

That’s a 38.8% jump compared to the same period in 2023. Even more impressive was that it blew past analysts’ expectations of 850.1 billion New Taiwan dollars.

The annual numbers make for hotter headlines. TSMC hit 2.9 trillion New Taiwan dollars in revenue for 2024. That’s the highest annual revenue the company has ever reported since it went public back in 1994.

If anyone thought AI demand was just hype, TSMC proved otherwise. With customers like Nvidia and Apple, this is a carefully engineered domination of the semiconductor market.

AI chips driving TSMC’s rise

AI-focused chips, especially Nvidia’s GPUs, are in high demand. TSMC is the company behind those chips, producing the most advanced semiconductors on the planet. They’re reportedly built to power AI workloads, from massive data centers to cutting-edge consumer tech.

TSMC’s chips are at the center of it all, making them indispensable for companies diving headfirst into AI innovation.

Even its smartphone semiconductor market, while not as flashy as AI, continues to improve, adding a steady revenue stream for TSMC. And investors are noticing. Shares of TSMC listed in Taiwan have shot up 88% over the last 12 months. 

Microsoft, meanwhile, is dropping $80 billion on new data centers by June 2025. Why? To handle AI workloads, plain and simple. Foxconn, another Taiwanese giant, reported its highest-ever Q4 revenue, fueled by AI server demand.

The global AI market is exploding

By the end of 2024, the AI market was worth $184 billion, a massive jump from $135.9 billion in 2023. That’s nearly $50 billion in growth in just one year. And it’s not stopping there. With an annual growth rate of 36.6%, the market is set to hit $826 billion by 2030.

AI startups grabbed 31% of global venture capital funding in Q3 2024. Everyone wants a piece of this pie, and it’s not hard to see why. The potential is huge.

Generative AI is another hotspot. More than half of companies—51%, to be exact—are using it for things like content creation and customer service. By 2032, the generative AI market is expected to hit $1.3 trillion.

The impact on jobs is just as important though. AI is projected to create 133 million new jobs globally by 2030. While some industries worry about automation replacing workers, the numbers tell us AI is more about transformation than elimination.

Governments are also watching closely, with AI projected to add $15.7 trillion to the global economy by 2030. That’s a 26% boost to GDP. Companies are responding by pouring up to 20% of their tech budgets into AI initiatives. Nearly 58% of firms plan to increase their AI spending in 2025.

But it’s not all smooth. Data management is a massive headache for companies adopting AI. Regulations on data storage, especially in places like the EU and the US, complicate how businesses collect and store information.

Then there’s the trust issue. Gen Zs, in particular, have concerns about privacy, biases in AI algorithms, and the security risks that come with adopting these technologies. Businesses are trying to address these fears, but it’s an uphill battle.

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