TSMC is set to achieve new revenue and profit records in 2024, driven by strong AI orders, according to industry sources. The pure-play foundry continues to accelerate its advanced process and packaging fab capacity expansions this year, further benefiting the local semiconductor equipment supply chain.
TSMC's after-tax net profit for the first three quarters of 2024 reached NT$798.59 billion (US$24.21 billion), ensuring that the annual profit will exceed NT$1.1 trillion. This achievement makes TSMC the first company in Taiwan to reach this significant financial milestone, sources indicated.
In 2025, TSMC will maintain its growth trajectory, with projected revenue growth of approximately 25%, enabling it to surpass the NT$3 trillion threshold, according to sources.
Advanced packaging demand soars
Beginning in the second quarter of 2023, firms such as Scientech, Grand Process Technology (GPTC), All Ring Tech, and Gallant Precision Machining (GPM) have secured significant orders for CoWoS expansion from TSMC, marking a growth phase. Their forecast sales for 2024 are expected to reach unprecedented levels, with order visibility extending through the end of 2025, indicating robust future performance.
Traditionally, TSMC has been cautious about extending its CoWoS and SoIC capacities. Since mid-2023, the foundry has focused on increasing production at its existing sites. Over a year ago, TSMC's InFo production lines were relocated from its Longtan (Taoyuan, northern Taiwan) fab to the Southern Taiwan Science Park (STSP). This relocation enhanced CoWoS's capacity while optimizing staff allocation.
Expansion plans accelerate
The surge in demand for Nvidia's AI GPUs, along with demand from ASIC chip clients such as AMD and Broadcom, has prompted TSMC to regularly adjust production capacity at its STSP and Taichung facilities. Initially focused on WoS, TSMC's Taichung plant has announced additional CoW capacity additions.
Additionally, TSMC acquired Innolux's 5.5G LCD fab in Tainan (Southern Taiwan) for NT$17.14 billion in mid-August 2024, with completion expected by the end of the first quarter of 2025. Advanced packaging-related equipment, including CoWoS, will be installed in the second quarter, significantly increasing overall CoWoS capacity by the second half of 2025. Construction at the Chiayi advanced packaging facility in Southern Taiwan is also accelerating.
TSMC has visibility on advanced process orders spanning more than two years, enabling continued rapid growth until 2025. Even before mass production of 2-nanometer technology begins, numerous companies are positioning themselves to place orders. With a substantial portion of AI chip orders, demand for advanced packaging remains strong.
According to industry sources, TSMC has recently revised its advanced packaging fabs plan. Following commitments and outlooks from major clients such as Nvidia, additional capacity has been allocated to its recently acquired Innolux fab.
Suppliers see strong growth
GPTC, a semiconductor wet processing equipment manufacturer, reported a December revenue of NT$491 million, increasing 38.94% month over month and 88.88% year over year. This pushed fourth-quarter and annual revenues to NT$1.222 billion and NT$4.073 billion respectively, setting new monthly, quarterly, and yearly sales records.
For 2025, orders from TSMC, Micron Technology, ASE Technology Holdings, and various Chinese clients are expected to drive wet processing machine sales to approximately 200 sets, with peak deliveries occurring each quarter. GPTC's annual profits will increase by more than 50% from 2024.
Scientech's December 2024 revenue was NT$789 million, declining 12.1% from the previous month. However, fourth-quarter revenue totaled NT$2.57 billion, rising 2.8% from the previous quarter and 32.5% year over year. The year's revenue reached NT$9.688 billion, a 40.1% increase from the prior year. Scientech's sales are expected to exceed NT$10 billion in 2025, resulting in another record profit.
All Ring has also benefited from TSMC's orders, generating NT$5.534 billion in full-year revenue for 2024, representing a 359% increase that sets a new record, with order visibility extending into 2026.
Article translated by Jessie Shen
