AI accelerates growth for TSMC: revenue rose by 37% in January

TSMC – the largest contract chip manufacturer

The Taiwanese company TSMC remains a leader among contract fabs, but now its primary revenue comes from orders for manufacturing semiconductor components for artificial intelligence infrastructure. These products require expensive “cutting‑edge” technologies.

* Revenue in 2024

According to the company’s forecast, total turnover will rise by 30 % this year. The first month already showed a 37 % increase – revenue reached $12.7 billion. Bloomberg notes that January figures provide a clear picture of the dynamics compared with last year. However, it should be noted that Chinese New Year holidays in 2023 coincided with this month, and TSMC operates on the schedule of mainland China. Nevertheless, the revenue growth in January was one of the highest of all previous months, and there was no seasonal decline.

* Increase in capital expenditures

The growing demand for AI chips forces TSMC to scale up production. Planned capital spending this year will rise by about 25 % and reach a record $56 billion.

* Global expansion

New facilities are being built not only in Taiwan but also in the United States, Japan, and Germany (in partnership with European partners).

* International challenges and company plans

Vice‑president of Taiwan Cheng Li Jun said in a CNBC interview that U.S. authorities’ demand to shift up to 40 % of chip production to the United States is unrealistic. The infrastructure of Taiwanese manufacturing “roots” deeply and cannot be quickly relocated in large volumes. Therefore, even with efforts to localize in the U.S., TSMC will continue to invest heavily in developing its facilities in Taiwan.

Thus, the AI boom boosts both revenue and capital costs for the company while strengthening its position as a key player in the global semiconductor supply chain.